Adani Transmission’s $700 M revolving facility gets ‘green loan’ tag
India: Adani Transmission Limited has disclosed its $700 M revolving loan facility has been tagged as a ‘green loan’ by Sustainalytics.
Sustainalytics, a Morningstar company, provides analytical environmental, social, and governance (ESG) research, ratings, and data to institutional investors and companies.
A revolving loan facility is a flexible financing tool that provides the borrower with the ability to draw down or withdraw, repay, and withdraw again.
On receiving the green load tag, Anil Sardana, MD, and CEO, ATL said ”ATL has been a signatory to energy compact goals as part of COP26 and the energy compact with the UN in November 2021.
”This is the testament to the overall philosophy of ATL to facilitate the transition to green energy by increasing the share of renewable power in the overall grid, in line with India’s commitment to climate change.” In October 2021, the company in a regulatory filing had announced raising $700 M for its under-construction transmission asset portfolio through the definitive agreements signed with leading international banks.
The revolving nature of the facility will help the company to achieve its goal of 20,000 km of transmission lines by 2022, ATL had said.
The projects associated with the $700 M revolving facilities are being implemented in Gujarat and Maharashtra.
In Gujarat, the projects are part of the government’s Green Energy Corridor Projects (GEC), dedicated to the evacuation and transmission of renewable energy.
While in Maharashtra, the projects are conceptualized to strengthen Mumbai’s transmission system by enhancing grid stability and providing a stable transmission network, which shall promote a higher share of renewable energy in the overall grid mix ensuring more penetration of green energy to the end consumers.
Source: Business Today