Va Tech WABGA, a leading player water technology space, has signed an agreement with Asian Development Bank (ADB) to raise ₹200 crore through unlisted Non-Convertible Debentures (NCDs). This project is ADB’s first private sector financing in India’s water sector, according to a statement issued by the company.
The NCDs will carry 5 year and 3 months tenor which will be subscribed by ADB over a 12-month period. This will be ADB’s first investment in a Water sector company in India, according to a statement.
The fundraising exercise is in continuation to the ongoing debt optimisation efforts of the Company through long-term and low-cost funding sources.
₹10,500 crorder book
The capital raised through this NCD issuance will be used towards working capital requirements of the Company that will be within the current borrowing limits, thereby not increasing its debt levels , it said. As of end-September 2022, VA Tech WABAG had an order book of ₹10,500 crore.
Treating waste water
The disposal of wastewater without proper treatment has put significant pressure on India’s already scarce water resources and the quality of those resources, notes Suzanne Gaboury, ADB Private Sector Operations Department Director General.
Va Tech has built wastewater treatment plants across the world treating over 27,000 million litres per day of municipal and industrial wastewater. Also, it has installed desalination plants with an installed capacity of over 1,200 million liters per day across the world.
On the NSE today, the VA Tech WABAG share closed at ₹312.65, which was 0.75 per cent (₹0.24) higher than the previous close.