Ola Electric raises $100 million long-term debt from Bank of Baroda

Ola Electric, the electric vehicle arm of ride-hailing company Ola, on Monday signed a long-term debt financing agreement of $100 million with Bank of Baroda.
 
The company claimed that the agreement was the largest long-term debt financing agreement in Indian electric vehicle (EV) industry. "This 10-year debt 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 said in a release.
 
The company is setting up its first electric scooter facility in Tamil Nadu. In December last year, Ola had said it would invest Rs 2,400 crore for Phase 1 of the factory.
 
The facility, which is coming up on a 500-acre site, will be the world's largest two-wheeler factory, producing 10 million vehicles annually at its full capacity.

Also Read: Ola's e-scooter to launch soon as Tamil Nadu factory nears completion
 
"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.
 
Bank of Baroda CEO and MD Sanjiv Chadha said the government has brought in several policies to incentivise 'Make in India' and to enable India to become a global EV leader.
 
"The Ola Futurefactory will put India on the global EV map and we are proud to be associated with them," he added.
 
The first phase of Ola's facility is nearing completion shortly, following which production trials of Ola Scooter will commence, the company said. The scooters will be manufactured at the Tamil Nadu facility, which will also serve as the global EV hub for Ola for its range of scooters and other two-wheelers.