India’s Adani Transmission told shareholders on Thursday that it has raised funds to finance four transmission projects, under construction in the western Gujarat and Maharashtra states.
The nation’s largest private sector power transmission and retail distribution company said it borrowed $700m from DBS Bank, Intesa Sanpaolo S.p.A., Mizuho Bank, MUFG Bank, Siemens Bank GmbH, Société Générale, Standard Chartered Bank, and Sumitomo Mitsui Banking Corporation.
The announcement hit Adani Transmission’s (ATL) stock, which finished 4.82% lower at INR1,784 ($23.82) on the National Stock Exchange (NSE). ATL has a market capitalization of around INR1.94trn on the NSE, where its shares have gained some 310% so far this year.
First of its kind deal
In the 28 October statement, ATL said the “revolving facility is an important element of (its) overall capital management plan and is key to fully funding its growth aspiration”.
“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 $1.1bn”, the firm added.
“This project financing deal is the first of its kind sanctioned by international banks in the transmission sector…,” Adani Transmission chief executive Anil Sardana commented. “… ATL is at the forefront of grid stability and providing sustainable, reliable and affordable energy solutions. Our development agenda is coupled with overall capital stewardship maintained through our capital management philosophy focused on equitable growth.”