Axis Bank Extends INR 250 Crore Loan to Vivriti Capital in Partnership with GuarantCo to Boost Electric Mobility

• ByStartupStory     |    December 14, 2023

Axis Bank, in collaboration with GuarantCo, has provided a three-year loan of INR 250 Crore to Vivriti Capital to advance electric mobility initiatives in India. GuarantCo, a part of the Private Infrastructure Development Group (PIDG), has played a crucial role in facilitating this financing arrangement. Vivriti Capital, an impact-focused non-bank financial institution, aims to utilize the funds to promote the adoption of electric vehicles (EVs) and the establishment of charging stations, contributing to the reduction of CO2 emissions and aligning with sustainable development goals in India.

The financing solution, backed by Axis Bank and GuarantCo, is anticipated to result in the deployment of more electric vehicles and charging infrastructure, fostering environmental benefits. As part of this initiative, it is estimated that up to 665 jobs will be created, with 30% of them expected to be occupied by women.

In a joint statement, it was revealed that Axis Bank, in partnership with GuarantCo, has extended a $2.5 billion (INR 250 Crore) three-year loan to Vivriti Capital. GuarantCo has provided a 50% on-demand credit guarantee to Axis Bank for this transaction, demonstrating a commitment to supporting initiatives in the e-mobility sector.

This financial arrangement operates under a $200 million framework guarantee agreement signed by Axis Bank and GuarantCo, enabling the mobilization of funds ranging from $300-400 million to finance India’s growing e-mobility ecosystem. Rajiv Anand, Deputy Managing Director at Axis Bank, emphasized the collaborative effort’s positive environmental impact and its role in driving innovation in the e-mobility sector.

Vineet Sukumar, Founder and Managing Director of Vivriti Capital Ltd, expressed pride in the collaboration and highlighted its significance in contributing to economic growth and sustainability. He emphasized the alignment with the government’s target of EV30@2030, aiming to increase electric vehicle adoption in the country.

Layth Al-Falaki, CEO at GuarantCo, stated their delight in closing the first transaction under the framework agreement with Axis Bank. He anticipates a transformative impact on the market, leading to increased lending for India’s e-mobility ecosystem. Al-Falaki emphasized GuarantCo’s commitment to utilizing the climate mitigation guarantee to support climate adaptation and mitigation initiatives in line with the PIDG 2030 strategy. The guarantee framework is expected to play a pivotal role in accelerating EV usage in India, significantly reducing carbon emissions and addressing climate change in the country.

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