Zenobē has funded 280 battery-electric buses for the Go-Ahead Group under a committed finance framework agreement (CFFA). The supplier says that will significantly cut the cost, complexity and execution of deployment of those vehicles across the group’s operations.
Cited as the first of its kind in the bus industry, the CFFA provides Go-Ahead with a pre-agreed, scalable credit line that can be drawn down as required to support its move to zero-emission. Four vehicle manufacturers are represented within the funding already provided.
The supplier says that a key benefit of the CFFA is its flexibility. When operators have limited control over contract award dates and vehicle supply chains, an ability to access financing when it is needed “is critical,” Zenobē, adds. The approach is also much faster, it continues.
“Rather than entering into repeated negotiations and executing individual lease agreements – a process often slowed by administration and complexity – funding can now be drawn down quickly under pre-agreed terms,” the supplier continues. The CFFA thus provides far more cost certainty for operators, it adds.
Comments Zenobē Founder and Director Steven Meersman: “This agreement marks a significant step forward in how public transport operators can finance the transition to zero-emission fleets.
“We have worked closely with Go-Ahead for many years, and this first-of-its-kind framework gives it the flexibility, speed and cost certainty it needs as electrification accelerates.”
Mr Meersman adds that while electrification of bus fleets is inevitable, a question remains over how quickly that move can be scaled.
“By removing repetitive negotiations and enabling funding to be drawn down rapidly under pre-agreed terms, we are making it easier, faster and more cost-effective to deploy electric vehicles at scale while allowing operators to stay focused on running their networks.”
Go-Ahead Group Structured Finance Director Gonzalo Velasco underlines how flexible, scalable and quick to execute financing solutions are key to electrification. He adds that the committed finance framework with Zenobē gives certainty of funding being available when required, removing unnecessary complexity and delay.
“As routes are awarded on a franchise-by-franchise basis, the ability to draw down funding rapidly under pre-agreed terms supports more effective planning and enables us to accelerate the rollout of zero-emission buses while continuing to focus on delivering reliable services for passengers.”
