Adani Energy Solutions, previously known as Adani Transmission, has announced the financial closure of $1 billion for its transmission asset currently under development in Mumbai. The company plans to initiate construction work in October.
The financial package forms part of a $700 million revolving project finance facility set up in October 2021 for its portfolio of transmission assets under construction. In a prior statement, the company mentioned the unique capital expenditure revolving structure of the facility provides funding of $1.1 billion on a fully drawn basis.
A consortium of nine international banks, including DBS Bank, Intesa Sanpaolo, Mizuho Bank, MUFG Bank, Siemens Bank, Société Générale, Standard Chartered Bank, Sumitomo Mitsui Banking Corporation, and The Hong Kong Mortgage Corporation, are involved in the deal.
Adani Energy Solutions predicts Mumbai’s electricity demand will rise to 5,000 Megawatts (Mw) by FY25, up from the current peak demand of 4,000 MW. The HVDC transmission link, for which the financial closure has been achieved, is expected to enhance grid stability by integrating with the state and national grids. The company intends to commence construction work by October this year. The multi-faceted project, spanning 80 kilometres, will provide a technological upgrade for the city, as per the company’s statement.
Earlier in the month, Adani Enterprises reported a financial closure of Rs 900 crore for its ingot and wafer manufacturing business. In addition, AdaniConneX, a 50:50 joint venture between Adani Enterprises and EdgeConneX, secured a $213 million senior debt facility in June to fund its under-construction data centre portfolio of 67 Mw capacity in Noida and Chennai.
First Published: Aug 07 2023 | 7:34 PM IST