“The maiden financing of USD 375 million executed with international lenders include an initial commitment of USD 315 million with accordion feature to enhance the commitments. Five international lenders participated in the initial financing which includes BNP Paribas, DBS Bank, Mizuho Bank, MUFG Bank, and Sumitomo Mitsui Banking Corporation,” said the company in the exchange filing.
The announcement was made on Friday after the market hours.
The financing will accelerate ATGL’s City Gas Distribution (CGD) network infrastructure development program and the expansion is expected to cater to over 200 million people covering 14% of India’s population.
The facility will fast track the capital expenditure program enabling ATGL to rapidly expand its CGD network into its 34 authorized Geographical Areas (GAs) across 13 states.
“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,” said Parag Parikh, CFO of ATGL.Given its gas distribution, ATGL is authorised in 34 geographical areas and plays a significant role in the nation’s efforts to enhance the share of natural gas in its energy mix. Of the 53 GAs, 34 are owned by ATGL and the balance 19 GAs are owned by Indian Oil-Adani Gas, a 50:50 joint venture between Adani Total Gas and Indian Oil Corporation.Also read: Vodafone Idea shares surge 8% after $3.6 billion deal with Nokia, Ericsson, and Samsung
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
