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Indian Adani to raise USD1.5 billion through offshore loans [free access]

May 17, 2021

India's private transmission company Adani Transmission Limited (ATL), will be raising USD1.15 billion through offshore loans, to fund four projects in the states of Gujarat and Maharashtra.


The projects include the Western Region Strengthening Scheme (WRSS), Lakadia Banaskantha Transco (LBTL), Kharghar Vikhroli Transmission Limited (KVTL) and the Aarey―Kudus high voltage direct current (HVDC) link in Mumbai. The Mumbai HVDC project accounts for nearly one-third of the funding requirement.


The loan could primarily be for five years and priced after adding a spread, or mark-up, to the London Interbank Offered Rate (LIBOR). The spread will be finalised after factoring in project execution and refinancing risks of the lenders.


Initially the company will raise about USD700 million from a group of foreign lenders, who will then extend another USD450 million credit line to the HVDC link, which has a completion deadline of January 2025. The second leg of the credit line may happen at the time of refinancing next year, the details for which are still under consideration.