Adani Transmission Limited (ATL) on Wednesday said its $700-million revolving facility has received a ‘green loan’ status from Sustainalytics.
The tag provides assurance on the green loan framework for the revolving facility.
ATL has obtained an independent second party opinion (SPO) from Sustainalytics on ATL’s adherence to its sustainability strategy, risk management and application of funds in relation to underlying eligible projects.
ATL has tied up the $700-million revolving construction facility in one of Asia’s largest revolving project financing deals from international banks for its under-construction transmission network portfolio in Maharashtra and Gujarat.
In Gujarat, these projects are part of the Government of India’s Green Energy Corridor Projects (GEC), dedicated to the evacuation and transmission of renewable energy.
In Maharashtra the projects are conceptualised to strengthen Mumbai’s transmission system by enhancing grid stability to promote a higher share of renewable energy supply to consumers.
Anil Sardana, MD and CEO, ATL, said, "The SPO from Sustainalytics is testament to the overall philosophy of Adani Transmission 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 capex revolving structure of the facility provides funding of $1.1 billion on fully drawn basis.
Green loan principles
Sustainalytics had issued the independent SPO on the alignment of the reviewed framework with current market standards and the extent to which the eligible project categories are credible and impactful.
According to Sustainalytics, ATL's green loan framework aligns to the core components of the green loan principles 2021 on project evaluation and selection, use of proceeds and associated contribution to sustainable development goals, and management of proceeds and reporting.
An Adani Transmission statement said, "This investment in the eligible category shall support the transmission of clean energy and advance the UN Sustainable Development Goals (SDG) 7 and SDG 9."
MUFG Bank Ltd acted as the green loan coordinator to the issuer for arranging the SPO on the green loan framework prepared by ATL.
ATL shares gained 1.5 per cent on Wednesday to trade at ₹2,088.55 on BSE.