New Delhi Macquarie Group, one of the largest foreign infrastructure investors in India, is in talks with commercial investors to set up an electric vehicle (EV) leasing and finance company, two people informed of the development.
The India-focused e-mobility financing platform will be managed by Macquarie Asset Management, which has approximately A773.1 billion in assets under management. It will work on reducing the upfront capital expenditure required to move towards green mobility. As part of its plan, Macquarie, which has secured $200 million in commitments from South Korea’s Green Climate Fund, will begin with an e-mobility financing platform for e-buses, shared fleets and EV charging infrastructure.
According to Macquarie’s website, “Macquarie aims to raise $205 million from institutional investors to capitalize on the platform and, over time, the platform expects to raise approximately $1.5 billion in capital (including debt finance).”
This comes in the backdrop of state-run Convergence Energy Services Ltd (CESL) announcing a tender discovered price for 5,540 electric buses for five cities – the lowest ever, and almost the same as diesel buses. equal to the operating cost. In what could help accelerate India’s ambitious plans for green mobility, EV prices are soon expected to be on par with internal combustion engine (ICE) vehicles.
According to Macquarie, “Macquarie is leading the development of a mixed finance platform with the United Nations Green Climate Fund (GCF) to support the adoption of EVs across India, reducing the country’s CO2 emissions and improving urban air quality.” Helps to improve.”
Macquarie and its managed funds oversee investments in 12.4GW of green energy capacity in India and have invested $2.5 billion to date.
A Macquarie spokesman declined to comment on specific questions about ongoing talks to raise the capital.
Energy Efficiency Services Limited (EESL) is running the government’s ambitious Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME 2) scheme for e-three-wheelers and e-buses. This money will be spent on subsidizing 500,000 electric three-wheelers, 1 million e-two-wheelers, 55,000 electric passenger vehicles and 7,090 e-buses.
“Initially, the platform will focus on select segments of the EV ecosystem such as e-buses, shared fleet and charging infrastructure, and will expand to other e-mobility sub-sectors as the market scales. In doing so, the platform aims to contribute to an enabling environment for EV development, increasing the accessibility of EVs and new market participants, including the development of financing solutions and home manufacturing, and reducing air pollution in urban environments. Macquarie said on its website. “With an implementation period of 10 years, the platform is expected to lead to a lifetime reduction of ~9.5 MtCO2e of greenhouse gas emissions.”