India’s Adani Total Gas (ATGL) has announced a financing agreement with international lenders, securing $375m (Rs31.32bn) to support its expansion plans.
The agreement includes an initial commitment of $315m, with an option to increase the funding, known as an accordion feature.
In a stock filing, ATGL said the financing was provided by a consortium of five global banks: BNP Paribas, DBS Bank, Mizuho Bank, MUFG Bank and Sumitomo Mitsui Banking Corporation.
This capital will accelerate ATGL's capital expenditure programme, allowing for expansion of its city gas distribution network (CDG) across 34 authorised geographical areas in 13 states in India.
The expansion aims to serve up to 14% of India's population, reaching more than 200 million people.
It is expected enhance the infrastructure for piped natural gas (PNG) and compressed natural gas (CNG), contributing to the development of a gas-based economy in the country.
ATGL is a key private sector entity in India, focused on developing CDG networks to supply PNG to various sectors and CNG to the transport sector.
The use of PNG and CNG aligns with the government's objective to increase the share of natural gas in India's energy mix from 6% to 15% by 2030, due to its affordability, reliability and environmental benefits.
ATGL CFO Parag Parikh said: “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”.
In April, ATGL's subsidiary, Adani TotalEnergies Biomass, commenced phase one operations at its Barsana Biogas Plant in the state of Uttar Pradesh.
Earlier this year, ATGL formed a partnership with INOXCVA to boost India's liquified natural gas infrastructure.
