First has signed a deal with three banks for the supply of vehicles which builds on its agreement with Hitachi to supply batteries
FirstGroup says it is pleased to announce that it has signed what it calls a new and innovative £150m green hire purchase financing facility with a syndicate of three banks to support the purchase of electric bus bodies, comprising the chassis and drivetrain, but excluding the batteries, which are already accounted for as part of its recent strategic joint venture with Hitachi. The latter provides for the purchase of up to 1,000 electric bus batteries, and was announced by the Group in November 2023.
The new facility will provide the funding for electric bus bodies, including chassis and drivetrain, net of any government co-funding received, and is available over three years, on what First says is a competitive basis. Funding under the facility will be provided in tenors of either seven or ten years depending on the specific requirement at the time for each batch of vehicles. First says that whilst the total number of vehicles to be financed will depend on a number of factors, including pricing, the facility has been sized to support the purchase of up to 1,000 electric bus bodies to broadly match the battery arrangements within the Hitachi joint venture.
Graham Sutherland, FirstGroup Chief Executive Officer said: “The innovative green hire purchase facility we have secured to support the purchase of electric buses represents another milestone for the Group. We continue to work hard to secure and optimise available funding to deliver on our First Bus decarbonisation commitment, build out adjacent electrification opportunities and create sustainable value for all our stakeholders.”
