According to reports, Ola Electric Mobility Pvt Ltd has signed a long-term debt finance agreement with the Bank of Baroda on Monday. The agreement is signed to obtain $100 million for the funding and financial closure of Phase 1 of its electric two-wheeler factory in Hosur, Tamil Nadu.
In December 2020, Ola disclosed that it plans to gain Rs 2400 crore to establish the first phase of its ‘future factory’.
Bhavish Aggarwal, Chairman and Group CEO of Ola expressed, “Today’s agreement for long term debt financing between Ola and Bank of 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.”
He further stated that they are committed to accelerating the transition to sustainable mobility and thereby manufacture made-in-India EVs for the world. “We are happy that Bank of Baroda has joined us in our journey,” he added.
As per reports, the Ola EV factory is being constructed on a 500-acre site. The factory in its full strength is expected to produce nearly 10 million vehicles annually. It aims to be the world’s largest two-wheeler factory.
Ola informed that the first phase of the factory is near completion after that production trials of Ola Scooter will begin.
Sanjiv Chadha, MD and CEO of Bank of Baroda said, “The government has brought in several policies to incentivize make-in-India and to enable India to become a global EV leader.” He stated that Ola is leading from the front and they are delighted to partner with Ola for their EV business. The Ola Future factory will put India on the global EV map and we are proud to be associated with them, he added.
In the past week, Ola affirmed that it has obtained $500 million headed by private equity firm Temasek and Warburg Pincus, leading it up to its public offering.
