SPY304.32+1.35 0.45%
DIA254.29-0.06 -0.02%
IXIC9,489.87+120.88 1.29%

Ideanomics' MEG Signs Agreement With Beijing Xenning Green For EV Procurement And Financing

NEW YORK, May 7, 2020 /PRNewswire/ --Ideanomics,(NASDAQ:IDEX) ("Ideanomics" or the "Company"), MEG division has today announced an agreement with Beijing Xinneng Green Intelligent Network

Benzinga · 05/07/2020 12:30

NEW YORK, May 7, 2020 /PRNewswire/ --Ideanomics,(NASDAQ:IDEX) ("Ideanomics" or the "Company"), MEG division has today announced an agreement with Beijing Xinneng Green Intelligent Network Technology Co., Ltd. (BXGI) to help finance the replacement of its urban fleet with electric vehicles (EVs) in China over the next five years, starting in 2020. The Group's fleet operations consist of more than 100,000 city buses. Upon conversion to EVs, it is estimated that this fleet will require a significant charging port infrastructure to accommodate the energy demand to power its EV fleet operations.

Ideanomics (PRNewsfoto/Ideanomics)

The value of replacing the BXGI fleet will reach the equivalent of several billion dollars in local currency over the five-year period. To finance this purchase, BXGI has secured between RMB 800 million and 1 billion (USD 113 million and 140 million). Working with its consortium of financial partners, MEG will assist BXGI with securing the balance of the financing. The fund is expected to close in the third quarter and proceeds will be used to purchase electric buses, MEG will also secure financing partners to underwrite the lease financing and any back-end ABS refinancing programs, in addition to vehicle procurement services. This agreement involves various divisions within MEG's comprehensive EV solutions and leverages all of its S2F2C model – vehicle procurement, financial services, and energy sales. MEG will receive group buying fees on vehicle procurement and origination fees related to the placement of lease financing, in addition to a portion of energy sales from BXGI's electric fleet.

The Company would like to remind its analyst and investment community of its 2020 first-quarter financial results on Monday, May 11, 2020. A press release will be issued at approximately 4pm ET, followed by a conference call at 4:30pm ET (4:30am Tuesday, May 12, 2020 Singapore & Beijing Time).