Adani Total Gas Secures $375 Million Financing for Expansion
Last Updated: Sep 21, 2024 | 12:16 PM IST
Adani Total Gas (ATGL) has entered into a comprehensive financing framework with global lenders to secure future funding based on its business plan. The initial financing round of $375 million, with an initial commitment of $315 million and an accordion feature to increase commitments, saw participation from five international lenders: BNP Paribas, DBS Bank, Mizuho Bank, MUFG Bank, and Sumitomo Mitsui Banking Corporation.
These funds will accelerate ATGL’s capital expenditure program, facilitating rapid expansion of its City Gas Distribution (CGD) network across 34 authorized geographical areas in 13 states. This expansion aims to serve up to 14% of India’s population, approximately 200 million people, enhancing the piped natural gas (PNG) and compressed natural gas (CNG) infrastructure essential for a gas-based economy.
Parag Parikh, CFO of ATGL, emphasized that global lender participation highlights the potential of city gas distribution as a transitional fuel. This financing framework supports ATGL’s growth and serves as a foundation for future funding aligned with the company’s capital management plan, ultimately creating long-term value for stakeholders.
Adani Total Gas, a leading player in India’s CGD sector, reported a 19.91% increase in standalone net profit, reaching Rs 177.09 crore in Q1 FY25 compared to Rs 147.69 crore in Q1 FY24. Revenue from operations also rose by 9.01% to Rs 1237.10 crore in the same period. The company’s stock advanced 1.60%, closing at Rs 788.60 on the BSE on Friday.
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First Published: Sep 21, 2024 | 12:06 PM IST
Original Story https://www.business-standard.com/markets/capital-market-news/adani-total-gas-secures-375-million-financing-from-global-lenders-124092100240_1.html
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