Adani Transmission's $700 Million Revolving Facility Gets 'Green Loan' Tag

Adani Transmission Ltd. on Wednesday said its $700 million revolving-loan facility has been tagged as 'green loan' by Sustainalytics.

"Adani Tranmission has been a signatory to energy compact goals as part of COP26 and the energy compact with the United Nations in November 2021," Anil Sardana, managing director and chief executive officer of Adani Transmission, said in a statement. "This is the testament to the overall philosophy of ATL to facilitate transition to green energy by increasing the share of renewable power in the overall grid, in line with India's commitment on climate change."

The company had in October 2021 announced raising $700 million for its under-construction transmission asset portfolio via definitive agreements signed with leading international banks. The revolving nature of the facility will help the company to achieve its goal of 20,000 circuit kilometres of transmission lines by 2022.

The projects associated with the $700 million revolving facility are being implemented in Gujarat and Maharashtra.

In Gujarat, the projects are part of the Green Energy Corridor Projects, dedicated to the evacuation and transmission of renewable energy.

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 higher share of renewable energy in the overall grid mix ensuring more penetration of renewable energy to the end consumers.

A Morningstar company, Sustainalytics provides analytical environmental, social and governance 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.