Adani Total Gas has secured financing to the tune of $375 million from five international lenders, that will be spent to boost the infrastructure for the company’s city gas distribution business.

Terming it as the largest global financing in the CGD segment, Adani Total said the financing includes an initial commitment of $315 million with accordion feature to enhance the commitments. The five global lenders are BNP Paribas, DBS Bank, Mizuho Bank, MUFG Bank, and Sumitomo Mitsui Banking Corporation.

The funds with enable the company to fast track its capital expenditure program to rapidly expand its CGD network into its 34 authorised geographical areas (GAs) across 13 states. “This development agenda shall cater to up to 14 per cent of India’s population covering more than 200 million people,” it said in a statement.

The expansion will deepen the penetration of Piped Natural Gas (PNG) and Compressed Natural Gas (CNG) infrastructure, creating an ecosystem for a gas-based economy, it added.

Financing framework

“Participation from the global lenders reinforces the potential of city gas distribution in its role as transition fuel,” said Parag Parikh, CFO of ATGL.

“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,” he said.

Adani Total Gas is authorised to distribute gas in 34 GAs. Of the 53 GAs, 34 are owned by ATGL and the balance 19 GAs are owned by Indian Oil-Adani Gas Pvt Ltd, an equal joint venture between the two companies.  

The company said it has been instrumental in the creation of transition energy platform for its large consumer base by providing network infrastructure across multiple GAs and also promoting sustainable energy in the form of E-mobility, LNG for transport and biomass to lead the charge of India’s energy transition.

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