Adani Total Gas Ltd (ATGL) has successfully secured $375 million in financing from a consortium of international lenders to enhance its City Gas Distribution (CGD) network across India. This marks ATGL’s first international financing deal, with five major institutions participating: BNP Paribas, DBS Bank, Mizuho Bank, MUFG Bank, and Sumitomo Mitsui Banking Corporation.
The initial commitment of $315 million includes an accordion feature, allowing for additional financial support to accelerate the company’s growth strategy. This funding is poised to bolster ATGL’s capital expenditure program, enabling it to expand its CGD network across 34 authorized geographical areas (GAs) in 13 states, aiming to serve 14 percent of India’s population, or over 200 million people.
This initiative aligns with the Indian government’s vision to increase the share of natural gas in the country’s energy mix from 6 percent to 15 percent by 2030. ATGL’s expansion efforts focus on enhancing Piped Natural Gas (PNG) and Compressed Natural Gas (CNG) infrastructure, facilitating India’s transition to a gas-based economy.
Parag Parikh, CFO of ATGL, noted, “Participation from global lenders reinforces the potential of city gas distribution as a transition fuel.” He added that this financing framework will support ATGL’s sustained growth and create long-term value for stakeholders.
Legal representation for the financing deal involved Latham & Watkins LLP and Saraf & Partners for the borrower, while Linklaters and Cyril Amarchand Mangaldas advised the lenders. ATGL operates in 34 GAs and manages an additional 19 GAs in a joint venture with Indian Oil Corporation Limited (IOCL) through Indian Oil-Adani Gas Private Limited (IOAGPL).
