Axis Bank has extended a INR 1 billion (c. USD 12.1 million) loan to Everest Fleet, an independent fleet management provider, under its partnership with GuarantCo, part of the Private Infrastructure Development Group (PIDG). The loan, provided for over four years, aims to facilitate the purchase of electric vehicles (EV) by Everest Fleet for use as green taxis in India.
This financial collaboration is a result of the USD 200 million INR equivalent framework guarantee agreement signed by GuarantCo and Axis Bank in May 2022. The agreement allows the mobilization of funds between USD 300 and 400 million in INR equivalent to finance the e-mobility ecosystem in India.
GuarantCo has provided a two-thirds on-demand credit guarantee to Axis Bank for this transaction, marking the second transaction under the framework agreement after a previous INR 2.5 billion (c. USD 30 million) loan to an impact-focused non-bank financial institution in the Indian e-mobility sector.
Through this initiative, Axis Bank and GuarantCo intend to support Everest Fleet’s strategy to increase the utilization of electric vehicles in India, where they currently constitute less than 1 percent of total vehicle sales.
The transaction is expected to benefit at least 1,000 drivers, aligning with Sustainable Development Goals (SDGs) 11.2, 11.6, and 13, which focus on providing access to sustainable transport systems, reducing environmental impact, and combating climate change.
Rajiv Anand, Deputy Managing Director at Axis Bank, stated, “Axis Bank is committed to driving the e-mobility revolution in India. Through this blended finance transaction, we have supported a service model and mobilized development capital, aiming to encourage communities to adopt electric vehicles and contribute to a greener, cleaner future.”
Layth Al-Falaki, CEO at GuarantCo, expressed delight in closing the transaction with Everest Fleet under the framework guarantee agreement. He emphasized the potential market transformation effect of the transaction, hoping it will catalyze the deployment of more electric vehicles by green ride-hailing companies in India.
