FirstGroup plc announced that it has signed a new, innovative £150m Green Hire Purchase Financing Facility with a syndicate of three banks to support the purchase of electric bus bodies (the chassis and drivetrain, excluding the battery) (the "Facility"). This follows the strategic Joint Venture with Hitachi to purchase up to 1,000 electric bus batteries announced by the Group in November 2023. The Facility provides the funding for electric bus bodies, net of any government co-funding received, and is available for drawdown over three years, on a competitive fixed margin plus basis.

Funding under the Facility will be provided in tenors of either seven or ten years depending on the specific requirement at the time for each batch of vehicle bodies to be financed. Whilst the total number of bus bodies to be financed will depend on a number of factors at the Group's discretion, including forward curve pricing, the facility has been sized to support the purchase of up to 1,000 electric bus bodies and to broadly match the battery arrangements within the Hitachi Joint Venture.