Ola Electric raises $100 million long term debt

The 10-year debt of $100 million is towards the funding and financial closure of phase I of Ola Futurefactory — its global manufacturing hub for electric two-wheelers, a statement said.

Ola said the first phase of the Futurefactory is nearing completion, following which production trials of the Ola Scooter will commence.

Ola Electric and Bank of Baroda have signed the largest long-term debt financing agreement in the Indian EV industry on Monday.

Ola would use this 10-year debt of $100 million to complete Phase 1 of its  Futurefactory, Ola’s global manufacturing hub for electric two-wheelers coming up at Krishnagiri in Tamil Nadu at an investment of Rs 2,400 crore.

“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,'' said Bhavish Aggarwal, Chairman & Group CEO, Ola.

Sanjiv Chadha, Managing Director & CEO, Bank of Baroda said, “The Ola Futurefactory will put India on the global EV map and we are proud to be associated with them.'' The first phase of Ola Futurefactory was nearing completion and production trials of Ola Scooter would commence soon, the company said.

The Ola Futurefactory that is coming up on a 500-acre site is expected to have a capacity to manufacture 10 million vehicles annually.