Facilitated by Axis Bank, the partnership is one of the largest deals bagged by Muthoot Capital
Kochi, October 01, 2024: Muthoot Capital Services Limited (MCSL), one of India’s fastest-growing NBFCs and a publicly traded entity of 137-year-old business conglomerate Muthoot Pappachan Group (Muthoot Blue) has announced the completion of its Rs 1 billion transaction (impact funding) from GuarantCo, part of the Private Infrastructure Development Group (PIDG). GuarantCo, has provided the funding guarantee to Axis Bank – one of the leading private sector banks in India, for a loan to Muthoot Capital and the proceeds will be used to on-lend to customers in rural and non-metro areas in India for purchasing electric two wheelers. The GuarantCo guarantee will cover up to 65 percent of the Axis Bank loan.
Mathews Markose, CEO at Muthoot Capital said: “Partnering with GuarantCo marks a significant step forward in accelerating the adoption of electric vehicles and advancing sustainable transport solutions in our country especially in the rural and semi-urban markets. This funding will enable Muthoot Capital to provide innovative and tailor-made financing options aimed at making electric vehicles more accessible and affordable to a wide range of consumers and businesses. We look forward to enabling the common man to own their own two-wheeler ensuring affordability and convenience. This will lend wings to our slated objective of growing our EV by 200 crores during FY25”.
Surabhi Mathur Visser, Chief Investment Officer at GuarantCo, said: “We are delighted to have closed the transaction with Muthoot Capital under the Electric Vehicle framework guarantee agreement that we signed with Axis Bank in May 2022. This is the third transaction that we have closed under the agreement which after the ones that we closed with Vivriti Capital and Everest Fleet now total INR 4.5 billion (c. USD 54 million). This is also the first transaction under the framework which will cover the demand side of the EV business through the provision of credit so that customers can purchase electric vehicles. In addition, the transaction is expected to have a market transformation effect that we hope will help catalyse deployment of more electric vehicles in India. GuarantCo, through the Private Infrastructure Development Group, will continue to utilise the climate mitigation guarantee with Axis Bank to further the e-mobility ecosystem in India and to deliver against our climate action aims aligned with the PIDG 2030 strategy.”
Rajiv Anand, Deputy Managing Director at Axis Bank said: “Axis Bank stands committed to support and accelerate the growth of the e-mobility industry in India. As one of the leading banks in the country, we are dedicated to driving initiatives that create positive environmental and social impact. By promoting the adoption of electric vehicles, we are working to reduce emissions, enhance air quality and provide affordable and accessible transport solutions nationwide. We have proactively scaled up our partnerships and engagements with EV dealers, manufacturers, and other players and will continue to do so. This collaboration not only supports the development of green infrastructure in India but also aligns with our broader vision of fostering an inclusive future where sustainable practices benefit all segments of society.”
