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They partnered with Hitachi Europe in 2021,(1) to help First Bus (part of FirstGroup) deliver a decarbonisation project at its flagship Glasgow Caledonia depot. The successful outcome of that project led to a joint venture between FirstGroup and Hitachi to support wider fleet transition.

In 2024, NatWest Group participated in a standalone syndicated debt facility to fund 1,000 batteries. The transaction provided FirstGroup and Hitachi with the flexibility to manage the battery delivery, their ongoing operation, and eventual replacement.

NatWest Group supported FirstGroup with a 12-year syndicated loan facility of £91 million to fund up to 1,000 bus batteries on a standalone basis. The batteries were then leased back to First Bus operating entities. We also acted as sole hedge coordinator for the associated interest rate swaps.

Additionally, FirstGroup invited NatWest Group to participate in a separate three-bank syndicate Hire Purchase (HP) facility to finance the purchase of electric bus husks (effectively the vehicle chassis and drivetrain, excluding the battery). This HP facility totalled £150 million, with NatWest Group providing a £50 million commitment to the business. The facility, together with the help of government grant funding through the ScotZeb scheme (Scottish Zero Emission Bus Challenge Fund) and the equivalent Zebra (Zero Emission Bus Regional Areas) scheme in England, supported FirstGroup in expanding their EV fleet in a managed way.

 

  1. NextGen AssetCo is a 50:50 joint venture between FirstGroup plc and Hitachi Ltd (including wholly owned subsidiaries Hitachi Europe Limited and Hitachi Rail Limited). NextGen AssetCo will purchase the batteries, which will then be leased to FirstGroup Energy Limited.
Jayden Patel (left) working with NWG Accelerator Manager Jess Grocutt (right).

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