Adani Transmission Limited (ATL), India’s largest private sector power transmission and distribution company’s USD 700 mn revolving facility has been tagged as a green loan by Sustainalytics. This assures the green loan framework for the revolving facility.
“ATL has been a signatory to the energy compact goals as part of COP26 and the energy compact with the UN in November 2021,” said Anil Sardana, MD, and CEO, ATL. “The SPO from Sustainalytics is a testament to the overall philosophy of Adani Transmission to facilitate the transition to green energy by increasing the share of renewable power in the overall grid, in line with India’s commitment to climate change.”
Sustainalytics has 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 with the four core components of the green loan principles 2021 on project evaluation and selection, use of proceeds, and the associated contribution to sustainable development goals, management of proceeds, and reporting.
The projects associated with the USD 700 Mn 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 conceptualised to strengthen Mumbai’s transmission system by enhancing grid stability and providing a stable transmission network that shall promote a higher share of renewable energy in the overall grid mix, ensuring more penetration of green energy to the end consumers.
This investment 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 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 standards for environmental, social, and governance (ESG) aspects. ATL’s business strategy is centred 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, achieving operational excellence, and protecting ecological services.
MUFG Bank, Ltd. has acted as Green Loan Coordinator to the issuer for arranging the SPO on Green Loan Framework prepared by ATL.