Adani Transmission, the electric power transmission business arm of the Adani Group, has raised $700 million in senior debt facility for its under-construction transmission asset portfolio through definitive agreements signed with international banks.

Eight international banks – DBS Bank, Intesa Sanpaolo, Mizuho Bank, MUFG Bank, Siemens Bank, Societe Generale, Standard Chartered Bank, and Sumitomo Mitsui Banking Corporation – have committed to the facility. The transaction will meet the capital recycling needs of the banks and make the c capital available for existing and future projects of Adani Transmission.

The company will use the funding to achieve its goal of 20,000 circuit kilometers of transmission lines by 2022.

As per the agreements, the company will engage with financiers to raise funding for its all-future project as per the agreed threshold parameters. The capital expenditure (CAPEX) revolving facility is expected to fund the CAPEX program of $1.1 billion.

The revolving facility is the company’s step toward overall energy transition. Adani’s projects located in Gujarat are part of the green energy corridor, a dedicated transmission line for renewable energy. Its projects in Maharashtra are critical response drivers to overcome technical constraints of renewable energy interface into the grid to ensure overall grid stability and integration of green energy into Mumbai.

Adani’s distribution company in Mumbai has set a target of procuring at least 60% energy from renewable sources from its existing 3%.

The company said Adani Group’s overall organic and inorganic investments across the energy value chain would range between $50 billion and $70 billion, with over 70% of CAPEX in sustainable technologies.

Anil Sardana, Managing Director and Chief Executive Officer of Adani Transmission, said, “This project financing deal is the first of its kind sanctioned by international banks in the transmission sector and validates the overall development model of the Adani Group. All the Adani Group companies have aligned their investment plans to honor the nation’s commitment to climate change. Adani Transmission is at the forefront of grid stability and providing sustainable, reliable, and affordable energy solutions.”

In 2019, the company received letters of intent from REC Transmission Projects Company Limited to develop two transmission projects in Gujarat.

In the same year, the company signed a share purchase agreement and completed the acquisition of the special purpose vehicle of Bikaner-Khetri Transmission Limited (BKTL), incorporated by PFC Consulting Ltd.