Ola Electric and Bank of Baroda have signed the largest long-term debt financing agreement in Indian EV industry.
This 10-year debt of US$100 million is towards the funding and financial closure of the Phase 1 of the Ola Future factory, Ola’s global manufacturing hub for its electric two-wheelers.
Ola had earlier announced last December that it will be investing Rs 2,400 crore for setting up the Phase 1 of the factory.
“The agreement for 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,” 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. 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, following which production trials of the Ola Scooter will commence.