Adani Total Gas Ltd (ATGL) has announced securing a record-breaking global financing of $375 million for its city gas distribution (CGD) business, marking the largest such deal in the sector. This funding will enable the company to serve over 200 million people, representing 14 percent of India's population.

The financing arrangement includes an initial commitment of $315 million, with the option to expand through an accordion feature. International lenders participating in the deal include BNP Paribas, DBS Bank, Mizuho Bank, MUFG Bank, and Sumitomo Mitsui Banking Corporation.

Parag Parikh, Chief Financial Officer of ATGL, emphasized the importance of this funding, stating, "Participation from global lenders underscores the pivotal role of city gas distribution as a transition fuel. This framework will drive sustained growth for ATGL, supporting our capital management plan and creating long-term value for stakeholders."

The financing will accelerate ATGL's capital expenditure program, allowing the company to expand its CGD network across 34 authorized Geographical Areas (GAs) in 13 states. This will significantly increase the penetration of Piped Natural Gas (PNG) and Compressed Natural Gas (CNG) infrastructure, fostering a gas-based economy in line with India's energy transition goals.

ATGL is expected to play a crucial role in the government’s plan to boost the share of natural gas in India's energy mix from 6 percent to 15 percent by 2030. PNG and CNG offer cost-effective, reliable, and eco-friendly fuel alternatives, supporting this vision.

ATGL has entered into a comprehensive financing framework that will allow for future funding based on its business needs. Of the 53 Geographical Areas in which it operates, ATGL owns 34, with the remaining 19 managed by Indian Oil-Adani Gas Private Ltd (IOAGPL), a joint venture between ATGL and Indian Oil Corporation Ltd.