50% guarantee to Axis bank to enable an INR 2.5bn (c. $30m) loan to Vivriti Capital a Non-Banking Financial Institution that specialises in financing businesses across the e-mobility value chain 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: Provide capital to businesses and corporates specialising in the e-mobility value chain across manufacturing, charging infrastructure and transport services. This will support emission reduction and improving air quality.
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 (<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.
$30m of local currency mobilised from Axis Bank.
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.
Vivriti endeavours to maintain their 2023 proportion of women in leadership (22% of board positions) and their workforce over the next five years (21% of managerial positions). They will continue to hold consultations to identify opportunities for women (governance and workforce).
As part of the due diligence process, 14 HSES improvements were identified which are now reflected in the Project Environmental and Social Action Plan (ESAP).
