GuarantCo provided a partial credit guarantee for a loan facility from Axis Bank to Chartered Speed Limited to scale its electric bus fleet in India under the flagship PM-eBus Sewa scheme. This transaction forms part of the initial set of contracts awarded under the scheme, which was launched by the Government of India to support the deployment of 10,000 electric buses across more than 100 cities to promote clean urban mobility, improve air quality and support sustainable infrastructure.

GuarantCo issued 66.66% partial credit guarantees denominated in Indian rupees, equivalent to c. USD 17.3 million, to support Chartered Speed’s c. USD 26 million debt raise. The total debt funding comprises of five separate loan facilities with a tenor of just under 10 years, aligned with the project concession terms.

Buses are India’s predominant form of public transport, accounting for approximately 40 per cent of road-based travel demand, making India the third-largest bus market in the world. Designed as a replicable and scalable financing model, the transaction will pave the way for future electric bus investments under the PM e-Bus Sewa Scheme, mobilising greater private capital to meet India’s urban mobility needs through electric buses.

There is an addressable market of at least 800,000 buses to be replaced with electric buses, but the lack of long-term effective and efficient local currency financing and a fragmented industry means there are challenges to gain the necessary momentum to make this transition a reality. Electric bus adoption in India is largely led by the public sector, with limited private participation. Scale up will require greater involvement from private operators, and this transaction is expected to mobilise and accelerate further investment through demonstration and replication.

This is the fourth deal completed under GuarantCo’s USD 200 million electric vehicle framework agreement with Axis Bank to finance the growth of India’s e-mobility ecosystem, with the intention of de-risking private lending and enabling participation of commercial capital in India’s rapidly growing electric mobility sector.

The facility provided by Axis Bank and guaranteed by GuarantCo will support the scaling and operation of a 300+ fleet of electric buses and associated charging infrastructure across five cities in the states of Chhattisgarh and Meghalaya.

The transaction delivers sustainable development impact on two fronts. As a climate solution, it supports the expansion of electric buses to reduce urban emissions and strengthen clean public transport systems. It also applies a strong gender and inclusion lens by improving the safety and accessibility of public transport for women across five Indian cities, with buses expected to feature ramps, panic buttons, and designated women‑only sections.

The deal is therefore aligned with two United Nations’ Sustainable Development Goals – 11 (sustainable cities and communities) and 13 (climate action).

This transaction was a strong strategic fit for GuarantCo to bridge the gap between demand and supply for e-mobility infrastructure finance, while playing a meaningful role in decarbonising the mobility sector and supporting India’s emission reduction targets.