Ola Electric signs pact to raise $100 mn in long-term debt
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Ola Electric on Monday said it has signed a $100 million (about Rs 744.5 crore) 10 year-term debt financing agreement with Bank of Baroda.
The 10-year debt of $100 million is towards the funding and financial closure of phase I of Ola Futurefactory - its global manufacturing hub for electric two-wheelers, a statement said. Ola had, in December last year, said it will invest Rs 2,400 crore for setting up phase I of the factory. "Today's agreement for long term debt financing between Ola and Bank of Baroda signals the confidence of the institutional lenders in our plans to build the world's largest two-wheeler factory in record time." "We are committed to accelerating the transition to sustainable mobility and manufacture made in India EVs for the world and we are happy that Bank of Baroda has joined us in our journey," Ola Chairman and Group CEO Bhavish Aggarwal said. Ola Futurefactory is coming up on a 500-acre site in Tamil Nadu. At full capacity of 10 million vehicles annually, it will be the world's largest two-wheeler factory. "The government has brought in several policies to incentivise Make-in-India and to enable India to become a global EV leader. Ola is leading from the front and we are delighted to partner with them for their EV business. The Ola Futurefactory will put India on the global EV map and we are proud to be associated with them," Sanjiv Chadha, Managing Director and CEO of Bank of Baroda, said.
