Finance provider Rock Road will significantly grow its presence in the zero-emission bus sphere after parents Rock Rail and Aviva Capital Partner formed a partnership with the UK Infrastructure Bank (UKIB) to provide it with a new funding platform.
That partnership, alongside a debut facility from UKIB and HSBC UK, is committing an initial £100 million to fund up to 250 such vehicles and their associated infrastructure.
Rock Road entered the zero-emission bus finance area in late 2022 with a deal to fund 30 Wrightbus StreetDeck Electroliners for Abellio London. It is understood also to be involved in bids to the second round of the Scottish Zero Emission Bus challenge fund.
The partnership says that its solution offers operators and local transport authorities scope to decarbonise bus fleets “while minimising capital outlay and outsourcing key ownership risks around residual value and battery replacement.”
It adds that the funding model is scalable “to accelerate fleet decarbonisation, crowd in further private capital, and in turn, reduce the reliance on public money to fuel the transition.” The partnership has already signed a deal with Go-Ahead London, which will lease 60 buses.
Rock Road builds on Rock Rail’s experience with rolling stock funding in the rail sector. It delivers what the partners describe as a model that attracts long-term institutional capital and “is well placed to support the introduction of bus franchising.”
Aviva’s participation is imperative to the development of Rock Road in the near-term and mobilisation of further private capital, it says.
Commenting, Aviva Chief Financial Officer Charlotte Jones says: “Aviva is investing across the UK to stimulate growth, help communities to get ready for the future, and support the transition to net-zero. This investment will make it easier for transport authorities to decarbonise their networks while continuing to provide a valuable public service.”
UK Infrastructure Bank CEO John Flint observes that replacing the UK bus fleet with zero-emission models will require “a massive scale-up of investment.”
Mr Flint continues: “The Bank’s financing has been crucial in helping to bring the innovative Rock Road leasing scheme to the market, which will reduce cost for operators and help to improve the uptake of zero-emission buses across the UK.”
