Adani Energy Solutions has achieved financial closure for its under-construction High Voltage Direct Current (HVDC) transmission link between Kudus to Aarey, Mumbai, Maharashtra by tying up a credit facility of $700 million with nine international banks.
The high-voltage transmission link will ensure an uninterrupted supply of renewable power to Mumbai, the company said in a release. It will also provide ‘green’ energy to Mumbai by supplying more renewable power to the financial capital of the country. The total cost of the project is $1 billion.
The banks involved in the platform infrastructure financing were DBS Bank, Intesa Sanpaolo S.p.A., Mizuho Bank, MUFG Bank, Siemens Bank GmbH, Société Générale, Standard Chartered Bank, Sumitomo Mitsui Banking Corporation and The Hong Kong Mortgage Corporation.
ALSO READ | Adani Energy Solutions net profit rises 8% to ₹182 cr in June quarter
The company said that the credit faciity was part of the revolving project finance facility tied up in October 2021 for its under construction transmission assets portfolio. “This unique platform infrastructure financing framework that funds various under-construction assets offers project access to funds that another project in the portfolio has paid back,” it said.
A financing structure like this would ensure continuous and consistent access to capital for all future projects in the company’s transmission portfolio, it said.
About the project, the company explained that HVDC transmission technology would help in stabilising the power distribution network and suitable for areas such as Mumbai where submarine cables are used to procure power.
Construction on the project is expected to start in October, it said.