Adani Total Gas Secures USD 375 Mn Financing From Global Lenders
The maiden financing of USD 375 million executed with international lenders includes an initial commitment of USD 315 million
Adani Total Gas (ATG) has secured maiden financing of USD 375 million from the global lenders, the company said in a media statement on Friday.
The ATG entered into an overall financing framework that will enable the company to secure future funding based on its business plan.
The maiden financing of USD 375 million executed with international lenders included an initial commitment of USD 315 million with accordion feature to enhance the commitments.
The five international lenders participated in the initial financing, which includes BNP Paribas, DBS Bank, Mizuho Bank, MUFG Bank, and Sumitomo Mitsui Banking Corporation.
The facility will fast track the capital expenditure program, enabling ATG to rapidly expand its CGD network into its 34 authorised geographical areas (GAs) across 13 states.
This development agenda shall cater to up to 14 per cent of India's population, covering more than 200 million people, as per the statement. The expansion will deepen the penetration of piped natural gas (PNG) and compressed natural gas (CNG) infrastructure, creating an ecosystem for a gas-based economy.
"ATG remains steadfast in its approach to leading the energy transition in India by fuelling increased usage of PNG and CNG to replace high-carbon-intensive conventional fuel sources and thereby creating a positive impact on the environment.
PNG and CNG usage offer a convenient, cost-effective, reliable and eco-friendly fuel and will further support the Government's vision of increasing the share of natural gas in the energy basket from 6 per cent to 15 per cent by 2030," the statement added.
“Participation from the global lenders reinforces the potential of city gas distribution in its role as transition fuel,” said Parag Parikh, CFO of ATG.
"This financing framework will drive ATG's sustained growth and will be a stepping-stone for future financing based on its capital management plan, which will create a long-term value for all our stakeholders," he added.
Latham and Watkins LLP and Saraf and Partners were the borrower's counsel, and Linklaters and Cyril Amarchand Mangaldas were the lender's counsel for this financing, the statement added. (ANI)
