Adani Total Gas Secures $375 Million for Expanding Gas Network in India
Adani Total Gas Ltd (ATGL) has secured its first financing of $375 million from global lenders. This funding will help ATGL expand its city gas distribution (CGD) network across 34 authorized Geographical Areas (GAs) in 13 states of India, covering up to 14% of the country’s population.
The financing includes an initial commitment of $315 million with an option to increase. The five international lenders involved are BNP Paribas, DBS Bank, Mizuho Bank, MUFG Bank, and Sumitomo Mitsui Banking Corporation.
This funding will accelerate ATGL’s capital expenditure program, enhancing the infrastructure for Piped Natural Gas (PNG) and Compressed Natural Gas (CNG). This will support India’s goal of increasing the share of natural gas in its energy mix from 6% to 15% by 2030.
Parag Parikh, CFO of ATGL, stated, “Participation from the global lenders reinforces the potential of city gas distribution in its role as transition fuel.” He added that this financing framework will drive ATGL’s sustained growth and create long-term value for stakeholders.
ATGL is committed to leading India’s energy transition by promoting eco-friendly fuels like PNG and CNG, which are cost-effective and reliable alternatives to conventional fuels. The company also supports sustainable energy initiatives such as e-mobility, LNG for transportation, and biomass.
Latham & Watkins LLP and Saraf & Partners were the borrower’s counsel, while Linklaters and Cyril Amarchand Mangaldas represented the lenders in this financing deal.
Doubts Revealed
Adani Total Gas Ltd (ATGL) -: Adani Total Gas Ltd (ATGL) is a company in India that provides natural gas to homes and businesses. They work on making sure people have access to gas for cooking and other uses.
$375 million -: $375 million is a large amount of money, equal to about 3,000 crore rupees. This money will be used to improve the gas network in India.
international lenders -: International lenders are banks or financial institutions from other countries that give money to companies or governments to help them with big projects.
city gas distribution network -: A city gas distribution network is a system of pipes and stations that deliver natural gas to homes and businesses in a city or area.
Piped Natural Gas (PNG) -: Piped Natural Gas (PNG) is natural gas that is delivered to homes and businesses through a network of pipes. It is used for cooking, heating, and other purposes.
Compressed Natural Gas (CNG) -: Compressed Natural Gas (CNG) is natural gas that is compressed to fit into small containers. It is often used as fuel for vehicles like cars and buses.
BNP Paribas -: BNP Paribas is a big bank from France that helps people and companies with their money and investments.
DBS Bank -: DBS Bank is a large bank from Singapore that provides financial services like loans and savings accounts.
Mizuho Bank -: Mizuho Bank is a major bank from Japan that offers various financial services to businesses and individuals.
MUFG Bank -: MUFG Bank is another big bank from Japan, known for providing financial services and loans to companies around the world.
Sumitomo Mitsui Banking Corporation -: Sumitomo Mitsui Banking Corporation is a large bank from Japan that helps businesses and people with their financial needs.