| | MAY 20238In the largest EV asset financing deal in India, the Power Finance Corporation Ltd (PFC) sanctioned a loan of Rs.633 crore to Gensol Engineering Ltd (GEL) for purchase of 5,000 passenger electric vehicles (EVs) and 1,000 cargo EVs. The passenger EVs will be leased to BluSmart Mobility (BMPL) to expand its fleet of ride-hailing cabs. The first tranche of the loan has been disbursed and the first lot of EV cabs has hit the roads of Delhi, the corporation said in a statement."E-mobility adoption is going on at a fast pace in the country. Through this funding, PFC has endeavoured to contribute towards India's Nationally Determined Contributions (NDC) goals and this will go a long way for moving towards a healthy and sustainable mode of transport", PFC Chairman and Managing Director Ravinder Singh Dhillon said.The 5,000 e4Ws funded by PFC are likely to result in emission savings of over 1,00,000 tonnes of CO2 equivalent -- equivalent to the amount of CO2 absorbed by over five million fully grown trees in a year. BluSmart has the largest fleet of electric cabs and the largest network of EV fast charging stations across Delhi NCR and Bengaluru.The company has completed more than five million all-electric trips, covering over 185 million clean kms with over 1.7 million plus app downloads. BluSmart has raised $75 million (in equity and venture debt) by BP Ventures, Mayfield, Survam Partners, and nine Unicorn fund among others. Also, it secured EV asset financing of total $150 million by DFIs, including financing funds of $35 million from the IREDA.With this sanction, PFC is supporting the government's vision of reducing dependency on fossil fuel, promoting electric mobility in the country and contributing to the reduction of carbon emissions from the transportation sector. As per persons familiar with the situation, the State Bank of India has approached international banks about a potential $500 million fundraise via a worldwide bond offering, the timing of which has yet to be determined.The country's largest lender is expected to formally engage investment banks next week for the proposed issue, which might be scaled up in size depending on investor response.The issue's arrangers are anticipated to be European, Japanese, and American banks."SBI has made primary enquiries with foreign banks to raise around $500 million through the issuance of US dollar-denominated bonds under Reg S/144 A", stated a direct source. "This move comes as the bank looks to raise funds and keep a close eye on the upcoming FOMC (Federal Open Market Committee) meeting scheduled for the first week of May".SBI got board approval to secure $2 billion through the issue of foreign currency bonds on April 18th. It is likely to issue the bonds in tranches over the course of FY24.Indian banks and non-bank financiers have been regularly tapping international markets for their funding needs over the years. Henceforth, with global benchmark rates to which the funding costs are tied moving up quite sharply from near zero levels not so long ago, issuers are having to pay proportionately more to raise funds from the international market.On April 18th, SBI received board clearance to raise $2 billion through the issuance of foreign currency bonds. The bonds will most likely be issued in tranches during the course of FY24.Over the years, Indian banks and non-bank lenders have routinely sought money from international markets. With global benchmark rates, to which finance costs are linked, rising dramatically from near zero levels not long ago, issuers will have to pay proportionately more to raise funds from the international market in the future.Reg S and Rule 144A permit companies to sell securities to investors in the United States and other countries without first registering with the Securities and Exchange Commission (SEC). According to persons acquainted with the subject, SBI can raise senior debt at a rate of five percent due to its quasi-sovereign status. POWER FINANCE CORPORATION SANCTIONS RS.633 CRORE TO GENSOL ENGINEERING FOR EV PROCUREMENTSBI AIMS TO SECURE $500 MILLION VIA DOLLAR BONDSIN FOCUSIN FOCUS
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