GuarantCo, part of the Private Infrastructure Development Group (PIDG), has provided a two-thirds on-demand credit guarantee to Axis Bank, one of the largest and most prominent private sector banks in India, to enable an INR 1 billion (c. USD 12.1 million), loan for over four years to Everest Fleet for the purchase of electric cars to be deployed as green taxis in India. The partial guarantee is provided under the USD 200 million INR equivalent framework guarantee agreement that GuarantCo and Axis bank signed in May 2022, which allows mobilisation of funds between USD 300 and 400 million in INR equivalent to finance the e-mobility ecosystem in India.

This is the second transaction closed in 2023 under the framework agreement after the INR 2.5 billion (c. USD 30 million) three-year loan to Vivriti Capital, an impact focused non-bank financial institution, earlier this month to support the company’s strategy to expand its portfolio through lending to companies operating in the e-mobility ecosystem in India. GuarantCo, through PIDG Technical Assistance, provided a grant to help with several aspects of the transaction.

Everest Fleet is India’s largest independent fleet management provider for the ride hailing platforms operating in the country. The transaction supports the company’s strategy to accelerate the use of electric vehicles, currently accounting for less than 1 percent of total vehicle sales in the country, to reduce emissions.

Through this transaction at least 1,000 drivers are expected to benefit which makes a direct contribution to SDG 11.2 (Provide access to safe, affordable, accessible and sustainable transport systems for all), SDG 11.6 (Reduce the adverse per capita environmental impact of cities) and SDG 13 (Take urgent action to combat climate change and its impacts). Read more.