Ola Electric Signs Pact To Raise $100M Long-Term Debt From Bank Of Baroda
- ByStartupStory | July 12, 2021
Ola Electric and Bank of Baroda have signed USD $100 million 10-year long term debt financing agreement towards the funding and financial closure of Phase 1 of the Ola Future factory. This is one of the largest long-term debt financing agreements in the Indian electric vehicle industry. Bhavish Aggarwal, Chairman and Group CEO, Ola, said, “Today’s agreement for long term debt financing between Ola and Bank of Baroda signals the confidence of the institutional lenders in our plans to build the world’s largest two-wheeler factory in record time. We are committed to accelerating the transition to sustainable mobility and manufacture made in India EVs for the world, and we are happy that Bank of Baroda has joined us in our journey.”
Last December, Ola had made an announcement that it will be investing Rs 2400 crore for establishing the first phase of the factory. The company is coming up with a 500-acre site in Tamil Nadu, India. At full capacity of 10 million vehicles annually, it will be the world’s largest two-wheeler factory. “The government has brought in several policies to incentivise make-in-India and to enable India to become a global EV leader. Ola is leading from the front, and we are delighted to partner with them for their EV business. The Ola Future factory will put India on the global EV map, and we are proud to be associated with them”, said Sanjiv Chadha, Managing Director and CEO, Bank of Baroda.
According to the statement, the Future factory is near completion, with the production trials of the much-awaited Ola Scooter expected to commence soon. The soon-to-be-launched Ola Scooter will be manufactured at the Ola Futurefactory, which will also serve as the global EV hub for Ola for its range of scooters and other two-wheelers.
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