Adani Total Gas Secures $375M Global Financing to Expand City Gas Network

23 Sep 2024 , 12:15 PM

Adani Total Gas Ltd (ATGL) secured $375 million in financing from global lenders, marking the largest funding initiative in the city gas distribution (CGD) business. The initial commitment is $315 million, with an option to increase funding based on ATGL’s business growth plans.

Key lenders involved include BNP Paribas, DBS Bank, Mizuho Bank, MUFG Bank, and Sumitomo Mitsui Banking Corporation.

The funding will accelerate ATGL’s capital expenditure program to expand its CGD network across 34 authorized geographical areas (GAs) in 13 Indian states. The expansion will serve around 14% of India’s population, covering more than 200 million people, boosting piped natural gas (PNG) and compressed natural gas (CNG) infrastructure.

ATGL aims to support India’s transition to a gas-based economy through this infrastructure development.

Parag Parikh, CFO of ATGL, stated that the participation of global lenders highlights the potential of CGD as a transition fuel and underscores future financing plans for sustained growth.

Legal advisors involved were Latham & Watkins LLP and Saraf & Partners for the borrower, while Linklaters and Cyril Amarchand Mangaldas represented the lenders.