A new $400 million financing platform has been launched to support the rollout of electric heavy vehicle fleets across Australia and New Zealand, providing transport operators with an alternative to funding fleet electrification through large upfront capital investment.
Developed by UK-based fleet electrification specialist Zenobē, the debt facility is backed by a syndicate of international banks and is believed to be the first integrated multi-site financing platform for heavy vehicle electrification across both countries.
The platform is designed to fund electric buses and commercial vehicles while combining vehicle leasing, depot electrification, battery replacement and fleet optimisation services into a single financing model.
Integrated approach to fleet electrification
Rather than requiring operators to separately finance vehicles and charging infrastructure, the platform enables customers to access an end-to-end electrification solution through a single funding arrangement.
According to Zenobē, the model is intended to reduce the financial and operational barriers that can slow the transition to zero-emission fleets.
“This platform represents a major step forward for zero-emission transport in Australia and New Zealand. By combining proven operational projects with a strong pipeline into a single financing structure, we’re able to bring greater scale, certainty and cost efficiency to fleet electrification,” said Gareth Ridge, Country Director for Australia and New Zealand at Zenobē.
The company said centralising finance across multiple projects would allow it to offer more competitive pricing than traditional project-by-project funding models.
Projects already operating
The financing platform launches with four electric fleet projects already in operation across Australia and New Zealand, including depots located in:
- Leichhardt, New South Wales
- Dunedin, New Zealand
- West Auckland, New Zealand
- Greater Wellington, New Zealand
Zenobē said the platform builds on its experience delivering similar financing models in Europe and the United Kingdom, where its electric vehicle financing platform has grown to more than £980 million.
Earlier this year, the company also announced a $100 million truck electrification program for heavy vehicle operators in Australia and New Zealand.
Removing barriers to adoption
Zenobē said the integrated financing model allows fleet operators to focus on transport operations while the company manages vehicle procurement, charging infrastructure and battery lifecycle management.
“Our model removes many of the traditional barriers operators face, from upfront capital costs to technology risk, while providing a fully integrated, end-to-end solution. This allows our customers to focus on delivering cleaner, more reliable transport services, while we manage the complexity,” said Mr Ridge.
“With strong momentum already underway across both markets, this platform positions us to accelerate investment and play a leading role in decarbonising transport across the region.”
The financing facility was arranged with support from Planum Partners. MUFG Bank acted as agent and security trustee, with Credit Agricole CIB, Siemens Bank, Sumitomo Mitsui Banking Corporation and Societe Generale participating in the lending syndicate.
Did you find this article interesting Click the ‘heart’ button above to give it a ‘like’!
