Zenobē secures $400m to accelerate fleet electrification across Australia and NZ

UK-based fleet electrification specialist Zenobē has secured a A$400 million (NZ$488m) financing facility aimed at accelerating the rollout of zero-emission heavy vehicle fleets across Australia and New Zealand.

The debt facility, backed by a syndicate of international banks, is believed to be the first integrated multi-site heavy vehicle fleet electrification financing platform established in Australia and New Zealand.

Zenobē says the platform will fund electric bus and commercial vehicle projects while helping operators avoid large upfront capital costs associated with fleet electrification.

The financing model combines vehicle leasing, depot electrification, battery replacement and fleet optimisation services into a single offering, allowing transport operators to adopt electric vehicles without directly funding the infrastructure and vehicle assets themselves.

The platform launches with four operational projects already in service, including electric fleet depots in Leichhardt, Dunedin, West Auckland and Greater Wellington.

Zenobē says centralising financing at scale will allow it to offer customers more competitive pricing than traditional project-by-project funding arrangements.

Gareth Ridge, Zenobē’s country director for Australia and New Zealand, says the platform is designed to remove some of the biggest barriers facing fleet operators.

“This platform represents a major step forward for zero-emission transport in Australia and New Zealand. By combining proven operational projects with a strong pipeline into a single financing structure, we’re able to bring greater scale, certainty and cost efficiency to fleet electrification.”

The company says the funding structure draws on similar models it has deployed in Europe and the United Kingdom, where it recently expanded its electric vehicle financing platform to more than £980 million (NZ$2.3b).

The announcement also follows Zenobē’s $100 million truck electrification programme unveiled earlier this year which was open for heavy vehicle operators in New Zealand and Australia.

Ridge says the integrated approach allows operators to focus on running transport services rather than managing electrification projects.

“Our model removes many of the traditional barriers operators face, from upfront capital costs to technology risk, while providing a fully integrated, end-to-end solution. This allows our customers to focus on delivering cleaner, more reliable transport services, while we manage the complexity.

“With strong momentum already underway across both markets, this platform positions us to accelerate investment and play a leading role in decarbonising transport across the region,” Ridge says.

The financing facility was arranged with support from Planum Partners, with MUFG Bank acting as agent and security trustee alongside lenders Credit Agricole CIB, Siemens Bank, Sumitomo Mitsui Banking Corporation and Societe Generale.