Five international lenders participated in the initial financing: BNP Paribas, DBS Bank, Mizuho Bank, MUFG Bank and Sumitomo Mitsui Banking Corporation.
“The facility will speed up the process capital spending program that allows ATGL to rapidly expand its urban gas network Distribution (CGD) in its 34 authorized geographic areas (GA) in 13 states,” he said.
This will cover up to 14 per cent of India’s population, which covers over 200 million people.
The expansion will deepen the penetration of the pipelines natural gas (PNG) and compressed natural gas (CNG) infrastructure, creating an ecosystem for a gas-based economy.
ATGL remains steadfast in its strategy to lead the energy transition in India by driving increased use of Papua New Guinea and CNG to replace conventional carbon-intensive fuel sources and thereby create a positive impact on the environment. The use of Papua New Guinea and CNG offers a convenient, cost-effective, reliable and environmentally 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, it said. “The participation of global lenders reinforces the potential of urban gas distribution in its role as a transition fuel,” said Parag Parikh, Chief Financial Officer, ATGL.
“This financing framework will drive ATGL’s sustained growth and will be a springboard for future financing based on its capital management plan that will create long-term value for all our shareholders,” Parikh added.
ATGL has been instrumental in creating an energy transition platform for its large consumer base by providing network infrastructure across multiple GAs and also by promoting sustainable energy in the form of e-mobility, LNG for transportation and biomass to lead the charge of India’s energy transition.
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.
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