Adani Energy attains $1 bn funding for Mumbai Transmission Project

Adani Energy Solutions, formerly known as Adani Transmission, has revealed the successful attainment of a financial milestone, securing $1 billion in funds for its transmission asset presently in the developmental phase in Mumbai. The company is poised to kickstart construction activities in coming October.

This financial achievement is part and parcel of a $700 million revolving project finance arrangement established back in October 2021, specifically designated for the company's array of transmission assets undergoing construction. A preceding statement by the company highlighted the distinct revolving structure of this funding facility, offering a comprehensive draw-down capacity of $1.1 billion.

A consortium comprising nine international banks, including DBS Bank, Intesa Sanpaolo, Mizuho Bank, MUFG Bank, Siemens Bank, Société Générale, Standard Chartered Bank, Sumitomo Mitsui Banking Corporation, and The Hong Kong Mortgage Corporation, have actively participated in this agreement.

Forecasts from Adani Energy Solutions anticipate a surge in Mumbai's electricity demand, projecting a rise to 5,000 Megawatts (Mw) by FY25 from the current peak of 4,000 MW. This recently secured financial closure pertains to the HVDC transmission link, anticipated to bolster grid stability by seamless integration with both state and national grids. Commencement of construction endeavors is earmarked for this October. The sprawling 80-kilometre project is poised to usher in technological enhancements for the city, according to the company's statement.

In an earlier development, Adani Enterprises disclosed a financial accomplishment amounting to Rs  billion for its ingot and wafer manufacturing business. Moreover, AdaniConneX, a joint venture equally shared between Adani Enterprises and EdgeConneX, successfully procured a senior debt facility totaling $213 million in June. These funds are earmarked to support their ongoing data centre projects, boasting a combined capacity of 67 Mw in Noida and Chennai.