IFC Announces US$100 million Initial Funding Arrangement with Element Fleet Management to Accelerate Mexico's Transition to Electric Vehicles

Mexico City, May 8th, 2025 – The International Finance Corporation (IFC), a member of the World Bank Group, has announced an investment of US$100 million (US$75 million of A Loan plus US$25 million of B loans/parallel loans to be mobilized) in Element Fleet Management Corporation (“Element”) to accelerate the adoption of electric vehicles (EVs) and charging infrastructure solutions in Mexico. This marks the first tranche of a US$600 million financing package to support Element’s business vehicle electrification efforts in Mexico, which aligns with the country’s decarbonization and climate goals.

The investment consists of a multi-year senior debt financing package of up to US$600 million. The complete envelope would include a series of "A" loans of up to US$250 million for IFC's own account and up to US$350 million as mobilization in the form of "B" loans/parallel loans for the account of participants. The financing will be structured as a sustainability-linked loan, with key performance indicators linked to decarbonization and gender.

The investment will facilitate the acquisition of EVs by Element’s clients in Mexico, including battery electric, hybrids and plug-in hybrids, and the development of associated charging infrastructure, depending on vehicle technology. This will help Element grow the share of HEVs, PHEVs and EVs in its fleet, contributing to significant greenhouse gas (GHG) emissions savings, estimated at 9,093 metric tons of CO₂ equivalent per year by 2029. This aligns with Mexico's climate change mitigation targets and supports the country's commitment to reducing GHG emissions by 35 per cent by 2030.

Manuel Tamayo, President for Element in Mexico, said: "Sustainability is not a passing trend for us - it’s core to our Purpose to Move the world through intelligent mobility, including who we are and how we hold ourselves accountable to inspire progress. This financing is a testament to our commitment, and an enabler to create an enduring legacy of sustainable and positive impacts within our communities. We are proud to lead these efforts in the region.”

Juan Gonzalo Flores, Country Manager for IFC in Mexico, said: “By promoting the adoption of electric vehicles, this investment will contribute to enhancing the sustainability of Mexico's transportation sector. This is a groundbreaking investment that demonstrates the viability of an innovative fleet management model to increase access to electric vehicles, encouraging others to follow suit.”

The sustainability linked loan framework also includes an emphasis on boosting female participation in the workforce, with Element aiming to increase representation of women within its operations in Mexico.  The transport sector helps drive growth and development, serving a critical role in building inclusive and resilient economies. Over the past decade, IFC has committed and mobilized over $11.3 billion for transport projects in emerging markets.

About Element Fleet Management

Element Fleet Management (TSX: EFN) is the largest publicly traded pure-play automotive fleet manager in the world. As a Purpose-driven company, we provide a full range of sustainable and intelligent mobility solutions to optimize and enhance fleet performance for our clients across North America, Australia, and New Zealand. Our services address every aspect of our clients’ fleet requirements, from vehicle acquisition, maintenance, route optimization, risk management, and remarketing, to advising on decarbonization efforts, integration of electric vehicles and managing the complexity of gradual fleet electrification. Clients benefit from Element's expertise as one of the largest fleet solutions providers in its markets, offering economies of scale and insight used to reduce operating costs and enhance efficiency and performance. At Element, we maximize our clients’ fleet so they can focus on growing their business. For more information, please visit: www.elementfleet.com