• Zenobē accelerates its electric vehicle (EV) fleet expansion with the addition of £410m of new debt to its existing £241m platform, the largest electric bus platform financing in Europe.
• This brings the total debt raised by Zenobē to over £1 billion since 2019.
• New financing follows the investment of c.£600m from KKR and a further c.£270m from Infracapital into the EV fleet and battery storage specialist in 2023.
• In partnership with 13 banks and other financial institutions, Zenobē with its legal advisors and NatWest Bank as sole financial advisor, has developed cutting-edge financing to support the UK’s decarbonisation ambitions.

29 May 2024 Zenobē, the leading EV fleet and battery storage specialist, announces the completion of a £410m finance deal – securing the largest electric bus platform financing in Europe. This influx of capital, in addition to its existing £241m EV financing platform established in 2022, will enable the business to support the deployment of over 2,000 electric bus vehicles throughout the UK and Ireland by 2026.

A long-term debt framework for electric bus fleets building on the private placement and Revolving Credit Facility (RCF) announced in 2022 is at the heart of the agreement. The platform will provide transport operators with the confidence to transition from conventional diesel to clean, electric buses by utilising Zenobē’s unique financing and managed service offers. One solution is Zenobē’s battery management service that removes battery risk for operators by taking on the responsibility and risk associated with EV batteries, including battery performance, replacement and repurposing in second-life applications – an area which Zenobē is pioneering.

Zenobē now supports over 75 bus depots around the world including Transdev Blazefield’s Harrogate depot where it will finance 39 fully electric vehicles, including a 15-year battery management service. Earlier this year, the fleet electrification specialist announced the financing of 24 batteries on board Nottingham City Transport’s newly acquired fleet of fully electric single deck buses. Both projects utilised Zenobē’s financing structure to enhance their Zero Emission Bus Regional Areas (ZEBRA) allocations.

This latest deal follows Zenobē’s £147m fundraise announced in January 2024, integral to the delivery of the Kilmarnock South and Blackhillock grid-scale battery storage projects the company is developing in Scotland. Zenobē’s debt financing total now strikes an impressive >£1 billion threshold since 2019, reflecting the company’s financial strength.

This substantial debt raise reflects the faith the market holds in green finance solutions and Zenobē’s market-leading bus fleet electrification solutions. Banks and institutions providing lines to support Zenobē’s green EV financing syndicate include Aviva, Lloyds, MUFG, NatWest, Santander, Scottish Widows, Siemens Financial Services through Siemens Bank and Société Générale. New banks and institutions to join the syndicate include ABN AMRO, CIBC, NAB, Rabobank and SMBC Group. This increases the numbers of banks and institution committed to Zenobē’s network infrastructure and EV fleet operations to a total of 13.

Nicholas Beatty, Founder and Director, Zenobē said: “We are committed to financing and delivering innovative and reliable electric fleet and energy storage solutions for our customers. This milestone is not just a win for Zenobē but marks a significant leap forward in the movement toward a clean, low-carbon transportation sector in the UK. This follows the debt financing to support construction of two of our major grid scale batteries in Scotland, completed in January. The faith and innovation shown by our financial partners affirms the maturing of these asset classes and the sustainability and resilience of our business model.”

Institutional investment from Aviva, Scottish Widows and Société Générale endorses the evolution of the EV fleet sector, recognising Zenobē as a key player in the UK’s transition to zero-emission transport. 

With 735MW of battery storage projects in operation or under construction and supporting over 1,200 electric vehicles globally, these fundraising achievements pave the way for Zenobē to continue its swift development of large-scale battery storage and fleet electrification projects.

Joe Taylor, Head of Infrastructure, Project and Asset Finance at NatWest, said: “This transaction represents the natural next phase in the evolution of the E-bus funding platform for Zenobē. The platform was designed to accommodate multiple sources of debt, and this has been achieved via the new facilities that Zenobē has entered into with commercial banks (both existing and new), institutional funders. The proceeds of this new financing will support Zenobē to drive the decarbonisation of the UK Public Transport system.”

Darryl Murphy, Managing Director, Infrastructure, at Aviva Investors, said: “As one of the largest investors in UK real estate and infrastructure, we understand the important role of private capital in developing its national infrastructure, particularly projects which support the decarbonisation of transport networks. Although the market for battery electric buses has developed rapidly into a leading zero emission technology, there is an undersupply of E-buses nationally. As such, we are pleased to have completed this financing which will help Zenobē continue its roll-out of EV buses, whilst also complementing the UK’s own zero emission schemes and delivering investment returns to UK retirement savers.”

Chin Ratnayake, Managing Director, Infrastructure & Project Finance, Lloyds Bank, said: “Decarbonising the transport sector is key to the UK achieving its legally binding commitment of Net Zero by 2050. Financing low carbon solutions in the UK remains core to our purpose. With its scale, highly contracted business model, Zenobē has created a strongly investable platform to roll out zero emissions buses. We are delighted to continue our support for Zenobē with an increased commitment, having supported the original financing in 2021 via Lloyds Bank and its insurance arm, Scottish Widows.”

Mark Cumbo, Director of Specialised & Project Finance at Santander UK, said: “We are delighted to have supported Zenobē and played our part in delivering this latest landmark electric bus financing.  Once again, we’ve shown that Santander is keen to support trailblazers like Zenobē who bring innovative solutions and positive environmental change to the UK’s energy and transport sectors.  We’ve worked closely with its strong management team since 2018, supporting Zenobē in all their debt facilities to date across different projects and are proud to be associated with this latest financing,  further supporting the Net Zero transition.”

Alex Kipling, Managing Director, Infrastructure Finance, Société Générale, said: “We are delighted to increase our commitments to finance Zenobē’s EV fleet roll-out. With the growing need to decarbonise transport through the use of e-mobility solutions, we’re impressed by Zenobē’s platform growth and their ability to scale rapidly. Zenobē’s de-risked business model delivers stable and predictable cash flows whilst modernising and upgrading the UK’s public transport offering. We welcome the opportunity to work with key clients such as KKR and Infracapital to deliver future-proofed and ESG-focussed investments.”

Green finance is opening doors for innovation and economies of scale, which work to lower the costs associated with cleaner, greener technology. The combination of Zenobē’s expertise in battery technology and innovative financing structures sets a new standard for the acceleration of sustainable companies in the UK. It is imperative that businesses, investors, and policymakers collaborate to strengthen these ties to secure a healthier planet and a resilient global economy for generations to come.

-ENDS-

For further information, please contact: zenobemedia@stonehaven.uk.com

Notes to editors
A breakdown of lenders to the existing £241m platform and £410 million refinancing
– ABN AMRO
– Aviva
– CIBC
– Lloyds
– MUFG
– NAB
– NatWest
– Rabobank
– Santander
– Scottish Widows
– Siemens Financial Services through Siemens Bank
– SMBC Group
– Société Générale

Read more about Zenobē’s £241m funding announcement in 2022, here: https://www.zenobe.com/news-and-events/zenobe-secures-up-to-241-million-in-first-of-its-kind-debt-structure-to-aid-growth-plans-in-the-electric-vehicle-ev-sector/
Read more about Zenobē’s c.£870m investment from KKR and Infracapital here: https://www.zenobe.com/news-and-events/zenobe-new-investment-kkr-infracapital/
Read more about Zenobē’s £147m fundraise to support its Battery Energy Storage Systems developments, here: https://www.zenobe.com/news-and-events/zenobe-secures-147-million-of-project-finance-debt-to-advance-scotlands-leadership-in-renewable-energy/
Read more about Zenobē’s partnership with Nottingham City Transport to support the roll-out of 48 fully electric buses, here: https://www.zenobe.com/news-and-events/nottingham-city-transport-partners-with-zenobe-to-launch-new-electric-bus-fleet/
Read more about Transdev Blazefield’s order of 39 fully electric buses for Harrogate https://news.busworld.org/article/131618/transdev-orders-ecitaro-and-enviro400ev-for-harrogate

About Zenobē: Zenobē is an EV fleet and grid-scale battery storage specialist, headquartered in the UK. The company began operations in 2017 with three founders and has over the past 6 years increased its staff to >250 FTEs with a wide range of leading skills including electrical engineering, software development, computer sciences and financing. Zenobē has around 25% market share of the UK electric bus sector and supports over 1,200 electric vehicles. The company is the largest owner and operator of EV buses in the UK, Australia and New Zealand. It now operates in Europe and Australasia and is expanding into North America. Zenobē has 735MW of battery storage in operation or under construction with an aim to commission 2.5GW of storage in the UK by 2028. For more information, please visit www.zenobe.com/ or follow on LinkedIn.