The initial funding of $375 million includes a primary commitment of $315 million, with an accordion feature for additional funding as needed.
Five companies are involved in this essential financing. global lenders: BNP Paribas, DBS Bank, Mizuho Bank, MUFG Bankand Sumitomo Mitsui Banking Corporation.
This funding will accelerate the ATGL project Capital expenditures programme, which enables the company to expand its CGD network to 34 authorised geographic areas (GAs) across 13 states, effectively reaching up to 14% of India’s population – over 200 million people, the company said in its press release.
“The participation of global lenders reinforces the potential of urban gas distribution “As a transitional fuel,” said Parag Parikh, ATGL’s Chief Financial Officer. “This financing framework will fuel ATGL’s sustained growth and will be a springboard for future financing based on our capital management plan, creating long-term value for all our stakeholders.”
This expansion will enhance the penetration of Piped Natural Gas (PNG) and Compressed Natural Gas (CNG) infrastructure, fostering an ecosystem that supports a gas-based economy, the company stated. By increasing the usage of PNG and CNG, ATGL aims to replace conventional carbon-intensive fuel sources, contributing positively to the environment and aligning with the Government’s vision of increasing the share of natural gas in India’s energy mix from 6% to 15% by 2030, read more in the company’s press release. ATGL has been a key player in developing the transitional energy platform, providing the necessary infrastructure and promoting sustainable energy solutions, including e-mobility and LNG for transportation.
Latham & Watkins LLP and Saraf & Partners acted as counsel for the borrower, while Linklaters and Cyril Amarchand Mangaldas represented the lenders in this financing arrangement, according to Adani Gas’ press release.
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.