Adani Total Gas (ATGL) announced that it has entered into an overall financing framework which enables ATGL to secure future funding based on its business plan. The company has raised $375 million, with an initial commitment of $315 million with accordion feature to enhance the commitments, it said in a regulatory filing. Five international lenders participated in the initial financing which included BNP Paribas, DBS Bank, Mizuho Bank, MUFG Bank, and Sumitomo Mitsui Banking Corporation.
ATGL said that the facility will fast track the capital expenditure program enabling the company to rapidly expand its City Gas Distribution (CGD) network into its 34 authorized Geographical Areas (GAs) across 13 states. This development agenda, it added, shall cater to up to 14 per cent of India’s population covering more than 200 million people. 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.
Parag Parikh, CFO, ATGL, said, “Participation from the global lenders reinforces the potential of city gas distribution in its role as transition fuel. 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.”
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 company informed.
From: financialexpress
Financial News
