Adani Transmission gets green loan certification for $700-mln revolving facility
- June 15, 2022
The $700-million revolving facility of Adani Transmission Ltd has been tagged as green loan by Sustainalytics. This provides assurance on the green loan framework for the revolving facility, a release by Adani Transmission said.
“ATL has been a signatory to energy compact goals as part of COP26 and the energy compact with UN in November, 2021” said Anil Sardana, MD & CEO, ATL. “The SPO from Sustainalytics is the testament to 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.”
This is the first of its kind certification of green loan in the transmission sector in the Asia Pacific (APAC) region, the release noted.
Independent SPO
Sustainalytics had issued the independent SPO (Second Party Opinion) on the alignment of the reviewed framework with the current market standards and the extent to which the eligible project categories are credible and impactful. Sustainalytics has opined that ATL’s green loan framework aligns to the four core components of the green loan principles 2021 on project evaluation and selection, use of proceeds and associated contribution to sustainable development goals, management of proceeds and reporting.
Sustainalytics has certified that ATL demonstrates its commitment to sustainability through its environmental strategy which is focused on building resilient infrastructure, achievement of operational excellence, and protection of ecological services.
MUFG Bank acted as Green Loan Coordinator to the issuer for arranging the SPO on Green Loan Framework prepared by Adani Transmission Ltd.
Revolving facility beneficiaries
The projects associated with the $700-million revolving facility are being implemented in the states of Gujarat and Maharashtra. 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 conceptualized to strengthen the Mumbai’s transmission system by enhancing grid stability and providing a stable transmission network which shall promote higher share of renewable energy in the overall grid mix ensuring more penetration of green energy to the end consumers.
The revolving facility underlines the overall development philosophy of Adani portfolio companies implemented through an in-house developed project excellence framework committed to the highest standard of due diligence covering all international standard Environment, Social and Governance (ESG) aspects. ATL’s business strategy is centered on achieving Sustainable Development Goals (SDGs) across all its activities.
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