NL Corresspondent
New Delhi: Private lender Axis Bank in partnership with GuarantCo, part of the Private Infrastructure Development Group (PIDG), has extended a Rs 1 billion (USD 12 million equivalent) guarantee to NBFC Muthoot Capital to expand footprint of electric two wheelers in the rural and non-metro cities.
This will empower the NBFC to lend to on-lend customers in rural and non-metro regions in India, for purchasing electric two wheelers, a joint press release stated. GuarantCo has provided a 65 percent on-demand credit guarantee to Axis Bank for this transaction, which is part of a broader USD 200 million electric vehicle (EV) framework agreement signed by GuarantCo and Axis Bank. This framework was established to enable mobilisation of funds between USD 300 and 400 million (INR equivalent) for financing the e-mobility ecosystem in India.
This collaboration with Muthoot Capital will focus specifically on providing transport solutions to rural and non-metro regions that predominantly consist of lower income populations that have historically been underserved.
The transaction will benefit Indian companies operating within the EV ecosystem with over Rs 0.8 billion (USD 10 million) and expected to impact local businesses in the supply chain, such as equipment manufacturers, vehicle dealers and insurers.
