Wrightbus secured £150 million funding from HSBC to accelerate zero emission bus production

Wrightbus, a leading manufacturer of zero-emission buses, has secured a £150 million finance package from HSBC UK to support its growth plans and further the decarbonisation of public transport fleets globally.

The bus manufacturer has just announced a £25 million R&D investment, including development of hydrogen coach.

HSBC provides funding for Wrightbus

The financing agreement more than doubles the company’s previous funding and “supports the long build-cycle of buses, enabling Wrightbus to accelerate production at its factories in Northern Ireland and Malaysia”, the manufacturer states.

Since its acquisition in 2019 by entrepreneur Jo Bamford, Wrightbus has undergone a major transformation. It currently employs over 2,300 people and produces approximately 1,200 buses annually, with 95% of output comprised of zero-emission vehicles, according to company’s figures.

The funding is set to help develop new technologies and broaden the product offering, as well as support the growth of the NewPower and Rightech new divisions of the business. The first is focusing on repowering of buses with electric drivetrain, the second is a new division offering short e-buses by King Long.

Wrightbus takes financing from HSBC

Wrightbus CEO Jean-Marc Gales states: “This is an important day for everyone connected with Wrightbus – not just the 2,300 employees but the 7,500 jobs we support in the wider supply chain. Our success is crucial to so many jobs and industries, so we must work relentlessly to keep up this progress.  This deal is a crucial step as we accelerate our growth and invest in decarbonising public transport with electric and hydrogen-powered buses. Not only does it mean we can provide cleaner and greener vehicles to UK bus operators, it also provides us with foundations for broadening our international reach, with a particular focus on ramping up production in Malaysia as we expand into the Asia Pacific market.”

Wrightbus Executive Chairman Jo Bamford explained: “With every new order and every entry into a new territory we’re flying the flag for UK manufacturing. HSBC UK’s support and detailed knowledge of our industry will help us lead the way in a new era for buses as we expand our offering across the globe.”

George Saunders, Capital Markets Director at asset management firm HYCAP which helped structure the deal, said: “The tailored solutions provided by HSBC deliver operational flexibility across the capital requirements of the business, enabling it to deliver electric and hydrogen buses at the speed and scale required to be a key transport decarbonisation partner.”

Akhil Shah, Relationship Director from HSBC UK, explained: “HSBC UK’s end-to-end experience across the public transport sector made us the ideal choice to become the business’s main backer and this new injection of funding puts Wrightbus in prime position to deliver on its ambitious aims.”

Rohit Moudgil, Head of Manufacturing and Industrials for HSBC UK, added: “HSBC UK is proud to support Wrightbus who are contributing to the decarbonisation of the public transport system in the UK. The transaction underlines our commitment to supporting the entire zero-emission vehicle ecosystem, connecting manufacturers, supply chains and end customers. Our sector team and coverage bankers are committed to providing the financial solutions businesses need to accelerate UK’s transition to zero-emission vehicles.”