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India based electric scooter manufacturer, Ola Electric has secured $100 Million in debt financing from Bank of Baroda.
Ola Electric in its issued statement said that, “It has signed a long-term debt financing agreement with Bank of Baroda for the period of 10 years.”
“The debt financing of $100 million is towards the funding and financial closure of the Phase 1 of the Ola Futurefactory, Ola’s global manufacturing hub for its electric two-wheelers,” Ola added.
Ola had earlier announced last December that it will be investing Rs 2,400 crore for setting up the Phase 1 of the factory.
Speaking on the funding, Bhavish Aggarwal, Chairman & Group CEO, Ola said, “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.”
“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 & CEO, Bank of Baroda added.
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.