FirstGroup Agrees GBP150 Million Loan to Purchase Electric Bus Bodies
By Anthony O. Goriainoff
FirstGroup said it has agreed a new financing facility for 150 million pounds ($189.6 million) for the acquisition of up to 1,000 electric bus bodies.
The FTSE 250-listed train and bus operator said the facility--which has been agreed with a three-bank syndicate--follows from the strategic joint venture with Hitachi to decarbonize its bus fleet, which will see the purchase of 1,000 electric-bus batteries.
The company said the total number of bus bodies--which include the chassis and drivetrain but not the battery--to be financed will depend on a number of factors, including forward curve pricing.
FirstGroup also said it has continued buying its 2024 6.875% bonds and that this has resulted in a reduction in future net interest cost, adding that it has completed purchases totaling GBP44 million since the end of its fiscal first-half and that as of Jan. 17 GBP128.1 million of the 2024 bonds remained outstanding.
"We continue to work hard to secure and optimize available funding to deliver on our First Bus decarbonization commitment, build out adjacent electrification opportunities and create sustainable value for all our stakeholders," Chief Executive Graham Sutherland said.
Shares at 0818 GMT were down 0.80 pence, or 0.5%, at 170.10 pence.
Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com
(END) Dow Jones Newswires
January 17, 2024 03:39 ET (08:39 GMT)
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