Burges Salmon advises Octopus on innovative electric vehicle finance product

Burges Salmon’s Energy and Infrastructure team has advised Octopus Group on a Shari’ah-compliant financing product that funds zero and ultra-low emission taxis for drivers on a pay-per-mile basis.

09 April 2019

Working with Octopus, the firm’s Banking and Energy specialists structured and documented the innovative finance product. Offering a ‘pay as you drive’ payment structure, the product moves away from traditional vehicle finance options, such as hire purchase or leasing, and by also making it Shari’ah compliant, finance is available to a broad base of potential customers.

Key to the finance package is its availability only towards ‘green’ energy vehicles. In bringing the product to market, Octopus has partnered with the London Electric Vehicle Company (LEVC), enabling finance only for zero-emissions capable vehicles.

The Burges Salmon team comprised partner Graham Soar, senior associate Alistair Rattray from the firm’s Banking team and Ross Fairley, head of Renewable Energy.

Dan Saunders, investment director at Octopus, says: “The need to reduce harmful emissions from transportation is well documented. Taxi drivers are at the forefront of this transition to clean vehicles.

“Our pay-as-you-drive finance product, which we’ve successfully launched to market with the help of the excellent legal advice from the Burges Salmon team, provides an option for taxi drivers to take ownership of a new taxi in a simple and flexible manner.

“Graham, Ali, Ross and the team at Burges Salmon guided and supported us throughout this journey, helping us to deliver a truly innovative vehicle finance offering.”

Key contact

Graham Soar

Graham Soar Partner

  • Banking
  • Derivatives, Debt Capital Markets and Securitisations
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