On September 23, shares of Adani Total Gas soared over 6 percent after the company secured $375 million in funding from global lenders to expand its city gas distribution (CGD) business. The joint venture between Adani Group and France’s TotalEnergies announced that this is the largest global financing initiative for the CGD sector.
The $315 million initial commitment includes an accordion feature that allows for additional funding based on the company’s business needs. The funds will accelerate the expansion of Adani Total Gas’ network infrastructure across 34 authorized geographical areas (GAs) in 13 states, covering up to 14 percent of India’s population, or over 200 million people.
The five international lenders involved in the financing included BNP Paribas, DBS Bank, Ltd., Mizuho Bank, Ltd., MUFG Bank, Ltd., and Sumitomo Mitsui Banking Corporation. This would further enhance infrastructure for piped natural gas and compressed natural gas, thus encouraging a gas-based economy in India.
Adani Total Gas CFO Parag Parikh said this also underlines the potential of city gas as a transition fuel by global lenders and the funding framework will support the company’s long-term growth and value creation.
At 9:19 am, shares of Adani Total Gas were up 5.8 percent to trade at Rs 835 on NSE as its price continues its 32 percent rally over the past year. The stock has slipped 16 percent year to date compared to Nifty’s19 percent gain in the same period.
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Source: Moneycontrol
News Desk
