Axis Bank, GuarantCo Enable INR 1 Billion Loan for Everest Fleet's Electric Taxis
Everest Fleet, an independent fleet management provider, has received a loan of INR 1 billion (approximately USD 12.1 million) from Axis Bank through its collaboration with GuarantCo, a member of the Private Infrastructure Development Group (PIDG). This four-year loan is intended to support Everest Fleet in acquiring electric vehicles (EVs) for the purpose of operating environmentally friendly taxis in India.
The financial partnership stems from the framework guarantee agreement, equivalent to USD 200 million in INR, inked by GuarantCo and Axis Bank in May 2022. This agreement enables the deployment of funds ranging from USD 300 to 400 million in INR equivalent, dedicated to financing 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".
CEO Layth Al-Falaki of GuarantCo conveyed satisfaction in finalizing the transaction with Everest Fleet within the framework guarantee agreement. He underscored the transaction's potential to bring about a transformative impact on the market, expressing optimism that it would stimulate further deployment of electric vehicles by environmentally conscious ride-hailing companies in India.
