Ola Electric raises $100 million in long term debt

Ola Electric and Bank of Baroda on Monday announced that they have signed the largest long-term debt financing agreement in the Indian electric vehicle industry. The 10-year debt of US $100 million (around Rs 750 crore) is towards the funding and financial closure of the Phase 1 of the Ola Futurefactory.

Ola had, last December, announced that it will be investing Rs 2,400 crore for setting up the Phase 1 of the factory. The company’s plant is located in Krishnagiri, Tamil Nadu.

“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,” said Bhavish Aggarwal, Chairman and Group CEO, Ola.

“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”, said Sanjiv Chadha, Managing Director and CEO, Bank of Baroda.

The Ola Futurefactory is coming up on a 500-acre site in Tamil Nadu, India. At full capacity of 10 million vehicles annually it will be the world’s largest two-wheeler factory.

The first phase of Ola Futurefactory is nearing completion shortly, following which production trials of the much-awaited Ola Scooter will commence. The soon-to-be-launched Ola Scooter will be manufactured at the Ola Futurefactory, which will also serve as the global EV hub for Ola for its range of scooters and other two-wheelers.