The transition to zero-carbon transport is well underway. Global spending on electric cars increased by 50% in 2022 compared to 2021, reaching around USD 425 billion. Banks are playing an important role in financing established and earlier-stage technologies. On transport day at COP28, the Net-Zero Banking Alliance is highlighting recent transactions from member banks in this key sector. These case studies are taken from the NZBA 2023 Progress Update.
Barclays delivers USD 300 million for electric trucking pioneer
In December 2022, Barclays delivered a USD 300 million securitisation transaction for Einride, committing USD 150 million of its own funds. Einride, a Swedish company that designs, develops, and deploys technologies for freight mobility will use this securitisation programme to finance its global, electric truck assets and customer contracts—permitting it to continue to scale its fleet, increase investment in research and development, and further develop relationships with partners. Founded in 2016, Einride’s electric trucks and charging solutions allow shippers and carriers to go fully electric and reduce their carbon footprint.
Read more on Barclays’ net-zero targets
BBVA supports financing of battery gigafactory developments in France and Spain
In September this year, BBVA acted as mandated lead arranger for a EUR 801 million syndicated loan facility to Envision AESC to support a planned EUR 1.1 billion battery gigafactory project in northern France, alongside six other lenders. When it starts production in 2025, the factory is expected to support the construction of some 200,000 batteries per year in its initial phase, equivalent to nine gigawatt hours of energy. The batteries will equip electric vehicles to be built by Renault over the next six years.
In November, BBVA followed this by providing the EUR 90 million in guarantees needed by Envision Spain to secure EUR 300 million in loans and grants from the Spanish government’s “Strategic Project for Economic Recovery and Transformation” programme. Envision will use the funds for the construction and operation of a lithium-ion battery gigafactory in western Spain with more than ten gigawatt-hours nominal capacity.
The financing will count towards BBVA’s EUR 300 billion sustainable finance target for 2025.