Electric mobility company GreenCell Mobility has secured ₹3.07 billion (~$37 million) in green financing from Japan-based bank Sumitomo Mitsui Banking Corporation (SMBC) to deploy a fleet of 350 electric buses across eight cities in the state of Uttar Pradesh.

The deal represents the first time a Japan-based bank has provided project financing for an electric mobility project in India, the company claimed. It is also SMBC’s inaugural foray into financing e-mobility initiatives in the Asia-Pacific region.

The loan from SMBC will facilitate the procurement, operation, and maintenance of GreenCell’s 9-meter pure electric air-conditioned buses over a 10-year concession period with the Uttar Pradesh government. The fleet comes under the government’s Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME II) program.

The project guarantees a fixed per-kilometer fee, mitigating traffic risk and ensuring a consistent revenue stream like an annuity, the company said. It estimates the e-bus fleet will reduce CO2 emissions by approximately 235,000 tons over the contract’s lifetime.

“Our historic partnership with SMBC demonstrates our unwavering commitment to sustainable mass mobility,” said Devndra Chawla, CEO of GreenCell Mobility. “This is a significant milestone strengthening our efforts to transform India’s electric transportation landscape.”

The company earlier secured ₹1.25 billion (~$14.97 million) in green financing from Standard Chartered for electric bus deployment in Surat.

In 2022, the Asian Development Bank had inked a $40 million financing package with GreenCell Express to develop 255 battery-powered electric buses. The company at the time had said that the e-buses would serve 5 million people annually and run across 56 intercity routes.

Previously, GreenCell had announced that it was investing ₹4 billion (~$55.09 million) in a consortium run by PMI Electro Mobility Solutions to deploy 350 electric buses across Uttar Pradesh. The investment also covered the acquisition of a 49% stake in the consortium. Lucknow and Kanpur were to get 100 buses each, Varanasi and Prayagraj 50 buses each, and Gorakhpur and Jhansi 25 buses each.