Adani Transmission is nearing financial close of 1,700 rupees for energy project

Adani Transmission, the power transmission company of Adani Group, is expected to reach a financial close of 1,700 crore rupees for its transmission line project in Mumbai by the end of July. Financing will be provided by a consortium of nine global banks through an international construction facility.

Proceeds will be used to build a 400KV substation and transmission lines in Maharashtra. In 2021, the project was estimated to cost Rs.2,100 crore, of which the company is now sourcing Rs.1,700 crore, sources close to the development said.

Adani Transmission, the country’s largest private power transmission and distribution company, is also increasing the facility at “competitive” rates and terms. The consortium includes, among others, DBS Bank, Mizuho Bank and Sumitomo Mitsui Banking Corporation.

In 2019, Adani Transmission received a letter of intent from the Maharashtra State Electricity Transmission Company to build, own, operate and maintain a transmission project in the state for 35 years. The project involves the development of Mumbai’s first-ever 400kV substation awarded through a tariff-based tender process.

The Kharghar Vikhroli Transmission project includes 34km of 400kV and 220kV transmission lines and a 400kV GIS substation in Vikhroli.

The facility complements Adani Transmission’s plans to raise approximately ₹8,500 crore through Qualified Institutional Placements (QIP). Earlier, Adani Group’s flagships, Adani Enterprises and Adani Transmission, announced plans to raise up to 21,000 crore in total through QIP or other means to secure additional capital for expansion and growth plans.

Adani Enterprises had announced plans to raise up to ₹12,500 crore.

Adani Green Energy, the group’s renewable energy arm, also wants to raise money through a share sale. While the company did not disclose the amount it intends to raise, sources familiar with the development previously told FE it intends to raise $500 million to $700 million (4,100 to 5,740 crore) that will go towards capital expenditures and debt reduction would be used.

A number of prominent investors, both Indian and domestic, had expressed interest in investing in the Adani Group companies’ plans to raise funds through the sale of shares through QIPs or other means.

Abu Dhabi-based International Holding Company, Abu Dhabi Investment Authority, GQG Partners, domestic institutional investors such as Life Insurance Corporation of India, State Bank of India, general insurance companies and finance companies, among others, will join the group’s fundraising plans participate, sources had told FE.

In March, Adani Group sold minority stakes in four public companies – Adani Enterprises, Adani Transmission, Adani Ports and Special Economic Zone and Adani Green Energy – to American investment boutique GQG Partners for 15,446 crore.

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