Adani Total Gas secures USD 375 million financing from global lenders
Sep 20, 2024
Ahmedabad [Gujarat], September 20 : Adani Total Gas Ltd (ATGL) has secured maiden financing of USD 375 million from the global lenders, the company said in a media statement on Friday.
The ATGL has 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 includes 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 ATGL 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.
"ATGL 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 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 ATGL.
"This financing framework will drive ATGL'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.
ATGL has played a significant role in the construction of a transition energy platform for its consumer base. It provides network infrastructure across several GAs, and pushes sustainable energy in the form of e-mobility, LNG for transportation, and biomass.
In addition to promoting network infrastructure across several GAs and pushing sustainable energy in the form of e-mobility, LNG for transportation, and biomass.
Latham & Watkins LLP and Saraf & Partners were the borrower's counsel, and Linklaters and Cyril Amarchand Mangaldas were the lender's counsel for this financing, the statement added.
