Companies

Sustainalytics Classifies Adani Transmission's $700 Million Revolving Facility as "Green Loan"

Published on: 16 June 2022 04:15 PM
by KnowESG

Sustainalytics has classified Adani Transmission Limited's, an electric power transmission company headquartered in Ahmedabad, India, $700 million revolving loan facility as a "green loan" on Wednesday. Sustainalytics, a Morningstar company, provides institutional investors and enterprises with analytical environmental, social, and governance (ESG) research, ratings, and data.

ATL said in a statement released on Wednesday that its Sustainalytics has classified a USD 700 million revolving facility as a green loan. It provides security for the revolving facility's green loan framework.

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

"ATL has been a signatory to energy compact goals as part of COP26 and the energy compact with the UN in November 2021," Anil Sardana, MD and CEO of ATL, stated upon acquiring the green load tag.

"This is a testament to the overall philosophy of ATL to facilitate the transition to green energy by increasing the share of renewable power in the overall grid, in line with India's commitment to climate change."

The company disclosed in a regulatory filing in October 2021 that it has struck formal agreements with prominent international banks to raise USD 700 million for its under-construction transmission asset portfolio.

According to ATL, the facility's rotational nature will enable the corporation to meet its objective of 20,000 ckt km (circuit kilometres) of transmission lines by 2022.

Gujarat and Maharashtra are implementing projects related to the USD 700 million revolving facility.

The projects in Gujarat are part of the government's Green Energy Corridor Projects (GEC), which are dedicated to renewable energy evacuation and transmission.

In Maharashtra, the projects are designed to reinforce Mumbai's transmission system by improving grid stability and providing a robust transmission network, which would promote a bigger share of renewable energy in the overall grid mix, ensuring greater green energy penetration among end-users.

Source: Economic Times

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