Shares of Adani Total Gas rose by over 6% on September 23, following the announcement that the company secured $375 million in funding from global lenders. This funding marks the largest global financing initiative in the city gas distribution (CGD) sector, a joint venture between the Adani Group and France’s TotalEnergies.
Largest Global Financing in CGD Sector
This financing is intended to accelerate the development of Adani Total Gas’s network infrastructure. The company received an initial commitment of $315 million with an accordion feature, allowing for additional funding if needed based on future business plans.
Global Lenders Involved
Five major international lenders participated in the financing: BNP Paribas, DBS Bank, Mizuho Bank, MUFG Bank, and Sumitomo Mitsui Banking Corporation. This funding will facilitate rapid expansion of Adani Total Gas’s CGD network into 34 authorized geographical areas (GAs) across 13 states, potentially serving 14% of India’s population over 200 million people. The project aims to bolster piped natural gas (PNG) and compressed natural gas (CNG) infrastructure, supporting India’s shift towards a gas-based economy.
CFO’s Statement on Global Participation
Parag Parikh, CFO of Adani Total Gas, emphasized that the involvement of global lenders highlights the significant role CGD plays as a transition fuel. He added that this financing will promote long-term growth and create value for all stakeholders.
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Legal Support for the Deal
Latham & Watkins LLP and Saraf & Partners represented the borrower, while Linklaters and Cyril Amarchand Mangaldas served as counsel for the lenders.
Stock Performance
At 9:19 am on the NSE, Adani Total Gas shares were trading 5.8% higher at ₹835. The stock has rallied 32% over the past year, outperforming Nifty’s 27% returns. However, year-to-date, the stock has declined by 16%, compared to Nifty’s 19% rise during the same period.
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