67% provided for a guarantee to Axis bank to enable an INR 1bn (c. $12m) loan to Everest Fleet to purchase 1k electric cars which will be deployed as taxis in India (LMIC). This transaction falls under the $200m INR equivalent framework guarantee between GuarantCo and Axis bank signed in April 2022, which aims to mobilise between $300–400m into e-mobility in India.
SDG 11.a + SDG 13 – Reduce the adverse per capita environmental impact of cities and climate change mitigation.
Expected impact: Add 1k new electric taxis to support the acceleration of e-mobility in India, supporting emission reduction and improving air quality.
SDG 8.5 – Sustain productive employment.
Expected impact: Contribute to income generation for at least 1k drivers. We expect the largest impact will be felt by drivers who are operating the taxi vehicle for the first time.
Challenge: The transition to electric vehicles in India will require a cumulative capital investment of $266bn by 2030. The technology is still in its nascency in India (EVs accounting for <1% of total vehicle sales) which elevates perception of risk in lending to the sector.
Channel: Provide a guarantee to Axis Bank to increased lending to the e-mobility sector space to support the entry and expansion of private sector players into the market.
Outcome: Demonstrate business models and financing products to support greater lending by domestic investors to the sector.
$12m of local currency mobilised from Axis bank.
$57k to support transaction costs to complete the project documentation.
Transition risk: EVs support the transition to a lower carbon economy. As the carbon intensity of the grid reduces through the integration of lower carbon power generation the GHGs associated with EV charging reduces.
As part of the due diligence process, 22 HSES improvements were identified which are now reflected in the Project Environmental and Social Action Plan (ESAP).
