Axis Bank gives Rs 1 bn loan to Everest Fleet for 4 years to purchase EVs

Axis Bank, in collaboration with GuarantCo, has extended a loan worth Rs 1 billion to Everest Fleet for a period of four years to purchase electric vehicles as a part of the Private Infrastructure Development Group (PIDG). The electric vehicles will be deployed as green taxis in India.

Everest Fleet is one of the largest independent fleet management providers in the country. This transaction will support the fleet to accelerate the use of electric vehicles. The private sector lender believes that the collaboration will empower companies that are working towards fostering sustainable transportation solutions to fight climate change.

Rajiv Anand, Deputy Managing Director, Axis Bank said, "Through this blended finance transaction, we have supported a service model and mobilised development capital. We are consistently striving not only to encourage communities to adopt electric vehicles but also catalysing progress towards a greener, cleaner future for all, echoing our commitment to the UN Sustainable Development Goals.”

This transaction is expected to help at least 1,000 drivers which makes a direct contribution to Sustainable Development Goal (SDG) 11.2 (Provide access to safe, affordable, accessible and sustainable transport systems for all), SDG 11.6 (Reduce the adverse per capita environmental impact of cities) and SDG 13 (Take urgent action to combat climate change and its impacts).

The funds allocated are a part of a $200 million INR equivalent framework guarantee agreement signed between GuarantCo and Axis Bank in May 2022. According to which, funds between $300 and $400 million in INR equivalent will be mobilised to finance the e-mobility ecosystem in India. GuarantCo has provided a two-thirds on-demand credit guarantee to Axis Bank for this transaction.

The Rs 1 billion or $12.1 million loan provided to Everest Fleet is the second transaction closed under the framework agreement after providing Rs 2.5 billion ($30 million) loan to an impact-focused non-bank financial institution in the e-mobility ecosystem in India.