Adani Transmission raises $700 mn

New Delhi: Adani Transmission Ltd (ATL) has raised $700 million for its under-construction transmission asset portfolio. The company said in a statement that it has raised $700 million for its under-construction transmission asset portfolio through the definitive agreements signed with leading international banks.

"This project financing deal is the first of its kind sanctioned by international banks in the transmission sector, and validates the overall development model of the Adani Group," said Anil Sardana, MD and CEO, ATL. As per the statement, the revolving facility will finance Adani Transmission's four transmission projects in Gujarat and Maharashtra. The revolving facility is an important element of ATL's overall capital management plan and is key to fully funding its growth aspirations, it said. The definitive agreements set out a Platform Infrastructure Financing Framework of agreed principles and procedures under which ATL will engage with the financiers to raise financing efficiently and expeditiously for all future projects as per the agreed threshold parameters.

On a fully drawn basis, the capex revolving facility will fund the capex program of $1.1 billion. According to the agreement, eight international banks, DBS Bank Ltd, Intesa Sanpaolo S.p.A, Mizuho Bank Ltd, MUFG Bank Ltd, Siemens Bank GmbH, Société Générale, Standard Chartered Bank, and Sumitomo Mitsui Banking Corporation, committed for the facility. This strategic transaction will meet the capital recycling needs of the banks and make the same capital available for current and future projects of ATL.

The revolving nature of the facility will help ATL to achieve its goal of 20,000 ckt km (circuit kilometer) of transmission lines by 2022. The facility is a step towards overall energy transition, wherein the projects located in Gujarat are part of the green energy corridor developed to facilitate dedicated transmission of renewable energy. The projects being implemented in Maharashtra are key upgrades to strengthen the transmission system and critical response drivers to overcome the technical constraints of renewable energy interface into the grid.