Adani Transmission Ltd., Adani Group’s electric power transmission business division, has reportedly raised USD 700 million in a senior debt facility for its under-development transmission asset portfolio, by signing definitive agreements with foreign banks.
Eight foreign banks- Intesa Sanpaolo, DBS Bank, MUFG Bank, Mizuho Bank, Societe Generale, Siemens Bank, Sumitomo Mitsui Banking Corporation, and Standard Chartered Bank- have committed to the facility.
The company will use the proceeds to attain its goal of establishing transmission lines of around 20,000 circuit kilometers by next year. The deal will fulfill the capital recycling conditions of the banks and make the capital available for current as well as future Adani Transmission projects.
Under the agreement, Adani Transmission will deal with financiers for obtaining financial assistance for its futuristic project according to the agreed threshold parameters. The CAPEX (capital expenditure) revolving facility will finance the USD 1.1 billion CAPEX program.
The revolving facility is Adani’s next step forward towards a comprehensive energy transition. The company’s projects in Gujarat come under the green energy corridor which is an exclusive transmission line for renewable energy.
Anil Sardana, the Chief Executive Officer and Managing Director of Adani Transmission stated that the project financing transaction is a novel deal approved by foreign banks in the transmission industry and is a validation to Adani’s overall development model.
The company stated that the overall inorganic, as well as the organic investments of Adani Group across the energy value chain, would be around USD 50 billion to USD 70 billion with more than 70% of capital expenditure in sustainable technologies.
Adani’s projects in Maharashtra drive crucial responses to overcome the technical restraints of interfacing renewable energy into the grid to ensure green energy integration as well as overall grid stability in Mumbai. The distribution company of Adani in Mumbai has set a goal of obtaining at least 60% of energy using renewable sources from its current 3% energy procurement.
Source credits:
https://mercomindia.com/adani-raises-700-million-in-senior-debt-facility/
