Having worked with NatWest on an innovative contracted receivables funding solution last year (see more information below), Zenobē turned to the NatWest team again to advise on a multi-source debt structure to help accelerate the expansion of the EV fleet sector.
In the role of Debt Advisor, the NatWest team advised on and structured a funding platform with an initial volume of £241 million, which will enable Zenobē to service and finance up to 430 new e-buses in the UK and Ireland.
The structure comprises long-dated term financing, alongside a shorter-term facility provided by six banks, including NatWest. The long-term debt will be used to refinance the existing contracts with Zenobē’s EV fleet customers, while the shorter-term facility will fund capital investment to support e-bus and charging infrastructure provided under service contracts to bus operators. The multi-source debt structure will also enable the company to raise senior debt financing against the service contracts that Zenobē has entered into with bus operator customers.
This transaction followed NatWest’s support for Zenobē in 2021 through a £20 million contracted receivables funding solution, which is secured against the cashflows generated by Zenobē’s contracts with the operators to provide charging infrastructure and managed EV bus services. Combined with Zenobē’s technical expertise, this NatWest funding enables the company to offer end-to-end services to the bus operators including the design, installation, financing and operation of electrical charging infrastructure in the depot, the financing and optional replacement of the battery in the bus and the financing of the non-battery components of the bus.