Adani Total Gas Ltd (ATGL) has secured a maiden financing of $375 million from global lenders, marking a significant milestone for the company. The financing framework will enable ATGL to secure future funding based on its business plan, with an initial commitment of $315 million and an accordion feature to enhance commitments. Participating lenders include BNP Paribas, DBS Bank, Mizuho Bank, MUFG Bank, and Sumitomo Mitsui Banking Corporation. This funding will fast track ATGL’s capital expenditure program and help expand its City Gas Distribution (CGD) network into 34 authorized Geographical Areas (GAs) across 13 states, benefitting up to 200 million people.
The expansion of ATGL’s CGD network will deepen the penetration of Piped Natural Gas (PNG) and Compressed Natural Gas (CNG) infrastructure, creating an ecosystem for a gas-based economy. This development agenda aligns with the company’s commitment to lead the energy transition in India by promoting the use of PNG and CNG over high-carbon-intensive conventional fuel sources. This shift towards clean and eco-friendly fuels not only benefits the environment but also supports the Government’s vision of increasing the share of natural gas in the energy basket from 6% to 15% by 2030.
Parag Parikh, CFO of ATGL, highlighted the potential of city gas distribution as a transition fuel and expressed optimism about the positive impact of global lenders’ participation in the financing. This funding framework will drive ATGL’s sustained growth and create long-term value for stakeholders. The company has been instrumental in constructing a transition energy platform for consumers, providing network infrastructure across various GAs and promoting sustainable energy initiatives such as e-mobility, LNG for transportation, and biomass.
The financing deal was facilitated by legal counsel from Latham & Watkins LLP and Saraf & Partners for the borrower and Linklaters and Cyril Amarchand Mangaldas for the lenders. This collaboration underscores the strategic importance of the financing in supporting ATGL’s expansion plans and commitment to driving the adoption of clean energy solutions. With the support of global lenders, ATGL is well-positioned to accelerate its efforts towards creating a greener and more sustainable energy ecosystem in India.
Overall, the $375 million financing secured by ATGL from international lenders represents a significant milestone in the company’s growth trajectory and commitment to leading the energy transition in India. By expanding its CGD network and promoting the adoption of clean fuels like PNG and CNG, ATGL is not only contributing to environmental sustainability but also aligning with the Government’s vision of increasing the share of natural gas in the energy mix. This financing will drive ATGL’s sustained growth and create long-term value for all stakeholders, reinforcing the company’s position as a key player in India’s energy sector.
