Adani Transmission’s $ 700 million revolving facility tagged as 'green loan' by Sustainalytics

Ahmedabad, June 15, 2022

Private sector power transmission and distribution major Adani Transmission Limited's (ATL) $ 700 million revolving facility has been tagged as a "green loan" by Sustainalytics.

This provides assurance on the green loan framework for the revolving facility, a press release from ATL said.

“ATL has been a signatory to energy compact goals as part of COP26 and the energy compact with UN in November, 2021,” Anil Sardana, MD and CEO, ATL, said. “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.”

Sustainalytics had issued the independent SPO 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 & selection, use of proceeds and associated contribution to sustainable development goals, management of proceeds and reporting.

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.

"These investments in the eligible category shall support the transmission of clean energy and advance the UN Sustainable Development Goals (SDG) 7 (Ensure universal access to affordable, reliable and modern energy services, increase substantially the share of renewable energy in the global energy mix); and SDG 9 (Develop quality, reliable, sustainable and resilient infrastructure, including regional and trans-border infrastructure, to support economic development and human well-being, with a focus on affordable and equitable access for all)," the release said.

According to it, 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. 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," it said.

MUFG Bank, Ltd has acted as Green Loan Coordinator to the issuer for arranging the SPO on Green Loan Framework prepared by ATL.

ATL is the transmission and distribution business arm of Adani Portfolio. It is the country’s largest private transmission company with a cumulative transmission network of 18,795 ckt kms, out of which 14,279 ckt kms is operational and 4,516 ckt kms is at various stages of construction. ATL also operates a distribution business serving about 12 million+ residents of Mumbai.

Sustainalytics is a leading independent ESG and corporate governance research, ratings and analytics firm that supports investors around the world with the development and implementation of responsible investment strategies.

The firm works with hundreds of the world’s leading asset managers and pension funds who incorporate ESG and corporate governance information and assessments into their investment processes.

Sustainalytics also works with hundreds of companies and their financial intermediaries to help them consider sustainability in policies, practices and capital projects.

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