Adani Total Gas Ltd (ATGL), the equal joint venture between Adani Group and French energy major Total Energies, has raised Rs 3131 crore ($375 million) from BNP Paribas, DBS Bank, Mizuho Bank, MUFG Bank, and Sumitomo Mitsui Banking Corporation, the company said on Friday.
The facility will fast-track the capital expenditure program enabling ATGL to rapidly expand its city gas distribution network into its 34 authorized Geographical Areas (GAs) across 13 states, the company said in a regulatory filing, adding that this development agenda shall cater to up to 14% of India’s population covering more than 200 million people.
"The maiden financing of $375 million executed with international lenders includes an initial commitment of $315 million with an accordion feature to enhance the commitments," ATGL said in a press statement.
Parag Parikh, CFO of ATGL said that 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 ATGL stakeholders.
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, the company added.
"ATGL remains steadfast in its approach to lead 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," the company said.
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% to 15% by 2030.
ATGL's scrip ended at Rs 788.60, up 1.60% on the BSE, Friday.
The facility will fast-track the capital expenditure program enabling ATGL to rapidly expand its city gas distribution network into its 34 authorized Geographical Areas (GAs) across 13 states, the company said in a regulatory filing, adding that this development agenda shall cater to up to 14% of India’s population covering more than 200 million people.
"The maiden financing of $375 million executed with international lenders includes an initial commitment of $315 million with an accordion feature to enhance the commitments," ATGL said in a press statement.
Parag Parikh, CFO of ATGL said that 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 ATGL stakeholders.
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, the company added.
"ATGL remains steadfast in its approach to lead 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," the company said.
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% to 15% by 2030.
ATGL's scrip ended at Rs 788.60, up 1.60% on the BSE, Friday.
