Adani Total Gas Secures $375 Million in First Global Financing

Adani Total Gas Ltd. has obtained USD 375 million from international lenders in its first global financing deal. This funding will help expand its City Gas Distribution network, catering to 14% of India's population and promoting wider use of eco-friendly fuels like Piped and Compressed Natural Gas.

Adani Total Gas Ltd (ATGL) has successfully secured its first global financing of USD 375 million, according to a media statement released on Friday. This financing framework will enable the company to secure future funding based on its strategic business plans.

The USD 375 million financing deal, which includes an initial commitment of USD 315 million with an accordion feature to enhance commitments, involves five international lenders. These lenders are BNP Paribas, DBS Bank, Mizuho Bank, MUFG Bank, and Sumitomo Mitsui Banking Corporation. This facility is expected to expedite ATGL's capital expenditure program and aid in rapidly expanding its City Gas Distribution (CGD) network across 34 authorized Geographical Areas (GAs) in 13 states.

The expansion aims to serve up to 14% of India's population, covering more than 200 million people. This development will increase the penetration of Piped Natural Gas (PNG) and Compressed Natural Gas (CNG) infrastructure, fostering a gas-based economy. Parag Parikh, CFO of ATGL, emphasized that global lender participation underscores the potential of city gas distribution as a transition fuel. The financing framework will support ATGL's sustained growth and future financing based on its capital management plan, ultimately adding long-term value for stakeholders.

ATGL plays a crucial role in building a transition energy platform, delivering network infrastructure across various GAs, and promoting sustainable energy solutions such as e-mobility, LNG for transportation, and biomass. Legal counsel for the borrower included Latham & Watkins LLP and Saraf & Partners, while Linklaters and Cyril Amarchand Mangaldas represented the lenders.

(With inputs from agencies.)