Zenobē, a leading electric vehicle (EV) fleet and battery storage specialist headquartered in the UK, has secured a significant financial boost for its electric bus operations. The company announced the completion of a £410 million financing deal, the largest electric bus platform financing in Europe to date. This latest funding round brings Zenobē’s total debt raised since 2019 to over £1 billion, showcasing growing investor confidence in the company and the potential of the electric bus market.
Commenting on the development, Nicholas Beatty, Founder and Director of Zenobē, said, “This milestone is not just a win for Zenobē but marks a significant leap forward in the movement towards a clean, low-carbon transportation sector in the UK.” He emphasised the importance of collaboration between businesses, investors, and policymakers to further strengthen green initiatives.
Earlier this month, we have done an interesting feature on the cutting-edge of electric car technologies. You can have a look at it as well.
Financing electric buses and battery management
This new debt financing builds upon Zenobē’s existing £241 million platform established in 2022. The combined £651 million will enable the company to support the deployment of more than 2,000 electric buses across the UK and Ireland by 2026. The financing structure is designed as a long-term debt framework for electric bus fleets, providing stability and confidence for transport operators considering the switch from conventional diesel vehicles.
A key element of Zenobē’s offering is its battery management service. This solution removes battery risk for operators by taking full responsibility for battery performance, replacement, and even repurposing in second-life applications. This innovative approach helps mitigate a major concern for potential electric bus adopters.
Zenobē’s financing solutions have already been utilised in projects across the UK. For instance, the company is financing 39 fully electric vehicles at Transdev Blazefield’s Harrogate depot, along with a 15-year battery management service. Similarly, Nottingham City Transport’s new fleet of electric single-deck buses also benefited from Zenobē’s financing structure.
This recent financing deal follows Zenobē’s £147 million fundraise in January 2024, which was instrumental in the development of grid-scale battery storage projects in Scotland. The substantial debt raise reflects the increasing faith the financial market has in green financing solutions and Zenobē’s position as a leader in electric bus fleet electrification.
A syndicate of 13 banks and financial institutions participated in Zenobē’s green EV financing. Existing partners include Aviva, Lloyds, NatWest, Santander, and Scottish Widows, while new institutions such as ABN AMRO, CIBC, NAB, Rabobank, and SMBC Group have joined the initiative. This broad participation highlights the growing recognition of Zenobē’s business model and its role in accelerating the transition to clean transportation.
Representatives from participating financial institutions echoed the significance of the deal. Joe Taylor, Head of Infrastructure, Project and Asset Finance at NatWest, highlighted the innovative financing structure that allows Zenobē to secure funding from diverse sources. Investors like Darryl Murphy from Aviva Investors and Chin Ratnayake from Lloyds Bank emphasised the crucial role Zenobē plays in decarbonizing the transportation sector and expressed their continued support for the company.
What we think about the startup
Zenobē’s success in securing over £1 billion in green financing signifies a major step forward in the UK’s electric bus transition. The company’s innovative financing solutions and expertise in battery technology are paving the way for wider adoption of clean transportation solutions.
With growing investor confidence and industry collaboration, Zenobē is well-positioned to play a leading role in achieving a low-carbon transportation future. It is important to note that while the article discusses the potential of Zenobē’s solutions, further research is needed to assess the long-term sustainability and wider environmental impact of their projects.
