New Delhi: Adani Total Gas Ltd, a joint venture between Adani group and French energy giant TotalEnergies, announced on Friday that it has obtained USD 375 million in funding from international lenders to support the growth of its business. "The company stated in a press release that the first round of funding, totaling USD 375 million, was secured from foreign lenders, with an initial amount of USD 315 million and the option to increase commitments through an accordion feature."
The initial financing involved five global lenders: BNP Paribas, DBS Bank, Mizuho Bank, MUFG Bank, and Sumitomo Mitsui Banking Corporation. It was stated that the facility will help ATGL quickly grow its City Gas Distribution (CGD) network in 34 authorized geographical areas (GAs) across 13 states by expediting the capital expenditure program. This will benefit around 14 percent of the Indian population, reaching over 200 million individuals. The growth will enhance the reach of piped natural gas (PNG) and compressed natural gas (CNG) infrastructure, establishing a environment for a gas-centered economy.
ATGL continues to be unwavering in its efforts to drive the energy transition in India by promoting the usage of PNG and CNG to replace traditional fuel sources with high carbon emissions, resulting in a beneficial environmental impact. It was stated that the utilization of PNG and CNG provides a convenient, economical, dependable, and environmentally friendly fuel option. This will also help achieve the government's goal of raising the natural gas portion in the energy mix from 6 pc to 15 pc by 2030. Parag Parikh, CFO of ATGL, stated that the involvement of international lenders enhances the promise of city gas distribution as a transitional energy source.
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