CIB to lend Highland Electric up to $50 million to Expand Electric School Bus Fleet in Canada
May 21, 2024
The Canada Infrastructure Bank (CIB) has reached financial close on a loan facility with Highland Electric Fleets (Canada) ULC worth up to $50 million to help finance the purchase of hundreds of zero-emission school buses (ZEBs).
Highland Electric will use the CIB loan facility to expand its Canadian business. The electric school buses will be leased – under Highland Electric’s innovative turnkey model – to school transportation providers and school boards to replace their aging diesel vehicles.
The facility would provide financing at a level of $85,000 for each Type A ZEB, $100,000 for each Type C, and Type D is to be mutually agreed upon. At these loan amounts, the facility could help finance the purchase of up to about 500 ZEBs and save approximately 5,500 tonnes of carbon emissions per year.
The CIB’s loan will cover the higher upfront capital costs of ZEBs, helping to accelerate the electrification of the bus fleets. ZEBs are a proven, much quieter and more sustainable transportation option for students. Repayment of the investment will come from expected reduced maintenance and fuel costs over the life of the vehicles.
The CIB loans under the facility will work in conjunction with Infrastructure Canada’s funding for zero-emission transit. Highland Electric will be responsible for the procurement of ZEBs, design and installation of charging infrastructure, and charge management. Operators will be responsible for performing maintenance and driving the ZEBs.
The CIB’s Zero-emission Bus Initiative assists transit agencies and school bus operators to transition their fleets to modern, environmentally friendly vehicles. The CIB has committed more than $1.5 billion towards up to 5,000 ZEBs.
