Zenobe Energy has established a multi-source debt structure that will bring up to £241m of funding into its business. It will enable Zenobe to initially service and finance up to 430 new battery-electric buses in the UK and Ireland.
The structure takes to over £300m Zenobe’s total debt finance support from financial institutions. It comes at the same time that Zenobe has signed an agreement to part-finance a further 130 BYD ADL Enviro400EV double-deckers and associated charging infrastructure for National Express Coventry. The buses will be delivered as part of Coventry’s transition to becoming the first All-Electric Bus City.
Of its latest funding round, Zenobe says that it has benefited from reduced finance costs after the institutions involved took account of its green credentials. Zenobe currently has 175MW of operational and contracted storage assets to service 394 zero-emission buses in the UK.
The transaction “will play a vital role in financing Zenobe’s turnkey fleet electrification offering,” the supplier adds. It notes that the structure will allow it “to raise senior debt financing against the service contracts that Zenobe has entered into with bus operator customers.” The funding platform will be used to raise additional financing over time as Zenobe further expands its activities in the UK and Ireland.
Says Founder Director Nicholas Beatty: “This is an incredibly exciting time for both Zenobe and the transport sector as a whole. This innovative funding structure marks the coming of age of structured finance solutions for fleet electrification, and it signifies substantial growth for our business, allowing us to accelerate the rollout of electric buses across the UK.
“We are delighted to have worked with NatWest to complete this ground-breaking financing of a new asset class for the market. The fund we are able to draw on from our new and existing funding partners through these and future contracts will support Zenobe in our aims to assist our customers to achieve the UK’s vehicle electrification targets.”
