The FINANCIAL — Societe Generale jointly led the US$129.5MM financing for 433 e-Buses and associated charging infrastructure for the RED transit system in Santiago, Chile. These zero-emission, 100% electric buses manufactured by BYD are leased to and operated by Metbus. The buses are jointly owned by AMP Capital and Enel X.
The deal to bring the new electric busses to Santiago was made possible when in June 2019, the Chilean government launched an environmentally friendly urban development policy, part of which includes a program to replace all current city buses with new-energy vehicles by 2040.
Currently, there are more than 400 electric buses operating in the RED system, making Santiago the city with the second-largest (after Bogota, Colombia) electric bus fleet outside of China. This government supported program is part of significant efforts to electrify and decarbonize public transportation infrastructure all across Latin America.
The AMP Capital and Enel X joint venture plans for future business by targeting municipalities and bus operators and through public procurement processes. The JV also targets a substantial pipeline in Latin and North America.
This transaction is part of a series of deals signed in 2020 for the financing of low or zero emission buses in the city of Santiago and has enhanced SG’s local footprint in positive impact financing in the area of mobility, complementing past transactions with Metro de Santiago and Empresa Ferrocariles del Estado, as well as SG’s involvement in the Republic of Chile’s EUR green bonds issued in 2019 and early 2020.
The closing of this electric vehicle transaction demonstrates the Bank’s global commitment to green financing and positive impact loans. Under the Green Loan Principles framework, this project qualifies as an eligible asset under the category of Clean Transportation. Specifically, this transaction promotes the environmental sustainability objective of combating climate change by the reduction of greenhouse gases and air pollutants.
