Adani Transmission’s $700m revolving facility gets ‘green loan’ tag

Adani Transmission Limited (ATL) said on Wednesday that its $700 million revolving loan facility had been labeled a “green loan” by Sustainalytics.

Sustainalytics, a Morningstar company, provides environmental, social and governance (ESG) research, ratings, and analytical data to institutional investors and corporations.

In a statement on Wednesday, ATL said “its $700 million revolving facility has been labeled as a green loan by Sustainalytics. This provides assurance on the green lending framework for the revolving facility.”

A revolving loan facility is a flexible financing tool that offers the borrower the option to draw down or withdraw, repay and withdraw again.

On receiving the green charging label, Anil Sardana, MD and CEO of ATL, said, “ATL was a signatory to the energy pact targets under COP26 and the energy pact with the UN in November 2021.

“This speaks to ATL’s overall philosophy to facilitate the transition to green energy by increasing the share of renewable energy in the global grid, in line with India’s climate change commitment.

In October 2021, the company, in a regulatory filing, announced the raising of $700 million for its pipeline of transmission assets under construction through definitive agreements signed with major international banks.

The renewable nature of the facility will help the company meet its goal of 20,000 ckt km (circuit kilometer) of transmission lines by 2022, ATL said.

Projects associated with the $700 million revolving facility 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 designed to strengthen Mumbai’s transmission system by improving grid stability and providing a stable transmission grid, which will foster a higher share of renewable energy in the overall grid mix. ensuring greater penetration of green energy to end consumers.

(Only the title and image of this report may have been edited by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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