GuarantCo guarantees Axis Bank to provide an INR 2.5 billion loan to Vivriti Capital to lend to e-mobility companies in India
GuarantCo provided a 50 percent on-demand credit guarantee to Axis Bank to extend an INR 2.5 billion (c. USD 30 million) three-year loan to Vivriti Capital to support the company’s strategy to expand its portfolio through lending to companies operating in the e-mobility ecosystem in India.
The guarantee is provided under the USD 200 million (INR equivalent) framework guarantee agreement signed by GuarantCo and Axis Bank allowing mobilisation of funds between USD 300 and 400 million (INR equivalent) to finance the e-mobility ecosystem in India. This is the first transaction that GuarantCo has closed under the framework agreement with Axis Bank which was first announced under a Memorandum of Understanding during COP26 in Glasgow in November 2021 after which a framework agreement was signed in May 2022.
The financing solution to Vivriti Capital, as provided by GuarantCo and Axis Bank, is estimated to increase the number of electric vehicles and charging stations deployed which will reduce CO2 emissions and contribute towards progressing the Sustainable Development Goals in India. In addition, up to 665 jobs are estimated to be created through this transaction, 30 percent of which will be held by women.
The transaction makes a direct contribution to SDG 9.4 (upgrade infrastructure and retrofit industries to make them sustainable with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes), SDG 11.2 (provide access to safe, affordable, accessible and sustainable transport systems for all) and SDG 5 (gender empowerment).