GuarantCo provides partial credit guarantee to Chartered Speed for electric bus fleet expansion

GuarantCo's provision of a partial credit guarantee to Chartered Speed, facilitating a loan from Axis Bank, is a significant development in India's electric vehicle (EV) infrastructure landscape. This financing supports the scaling and operation of over 300 electric buses and associated charging infrastructure across Chhattisgarh and Meghalaya. By mitigating risk for Axis Bank, GuarantCo's guarantee enables Chartered Speed to expand its EV fleet, contributing to cleaner transportation options in these regions. This deal exemplifies a blended finance approach, combining commercial lending with development finance to accelerate the adoption of sustainable transportation solutions. The deal is notable for several reasons. First, it involves GuarantCo, a specialized guarantor focused on mobilizing local currency finance for infrastructure in developing countries. Second, the project aims to deploy a substantial fleet of electric buses, representing a significant investment in EV infrastructure. Third, the involvement of Axis Bank demonstrates the growing interest of commercial banks in financing EV projects, particularly when risk is mitigated through guarantees. This transaction could serve as a model for future EV financing deals in India and other emerging markets, encouraging greater private sector participation in the sector.