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Macquarie is seeking funds to create an electric vehicle rental company


NEW DELHI : Macquarie Group, one of India’s largest foreign infrastructure investors, is in talks with commercial investors to raise $205 million to establish an electric vehicle (EV) leasing and financing company, say two people familiar with the development.

The India-focused e-mobility finance platform will be managed by Macquarie Asset Management, which manages assets of around A$773.1 billion. It will strive to reduce the up-front capital expenditure required for the push towards green mobility. Under its plan, Macquarie, which has secured $200 million in commitments from South Korea’s Green Climate Fund, will start with the electric mobility funding platform for electric buses, shared fleets and electric vehicle charging infrastructure.

“Macquarie aims to raise an additional $205 million from institutional investors to capitalize the platform, and over time the platform hopes to raise approximately $1.5 billion in capital (including debt funding),” according to the Macquarie website.

It comes amid state-run Convergence Energy Services Ltd (CESL) announcing the price uncovered in a tender for 5,540 electric buses for five cities – the lowest on record, and nearly on par with diesel bus operating costs. In what could help accelerate India’s ambitious plans for green mobility, prices for electric vehicles should soon be on par with those of internal combustion engine (ICE) vehicles.

“Macquarie is leading the development of a blended finance platform, with the United Nations’ Green Climate Fund (GCF), to drive adoption of electric vehicles across India, helping to reduce carbon emissions. CO2 emissions and improve urban air quality,” according to Macquarie.

Macquarie and its managed funds are overseeing investments in 12.4GW of green power capacity in India and have so far invested $2.5bn.

A spokesperson for Macquarie declined to comment on the specific question regarding ongoing talks to raise capital.

Energy Efficiency Services Ltd (EESL) runs the government’s ambitious Faster Adoption and Manufacture of Hybrid and Electric Vehicles (FAME 2) program for electric three-wheelers and buses. The money will be spent to subsidize 500,000 electric three-wheelers, 1 million electric two-wheelers, 55,000 electric passenger vehicles and 7,090 electric buses.

“Initially, the platform will focus on selected segments of the electric vehicle ecosystem, such as electric buses, shared fleets and charging infrastructure, and will expand to other subsectors. electric mobility as the market evolves. In doing so, the platform also aims to contribute to an enabling environment for the growth of electric vehicles, resulting in increased penetration of electric vehicles and new market players, including the growth of financing solutions and domestic manufacturing, and helping to reduce air pollution in urban environments,” Macquarie said on its website: “With an implementation period of 10 years, the platform is expected to deliver a lifetime reduction of approximately 9 .5 MtCO2e of greenhouse gas emissions.”

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