Adani Total Gas Ltd (ATGL) on Friday said it has secured the largest global financing in the city gas distribution business, at $375 million, which will help the company cater to over 200 million people, covering 14 per cent of India’s population.

The maiden financing, executed with international lenders, includes an initial commitment of $315 million with an accordion feature to enhance the commitments.

Five international lenders, which include BNP Paribas, DBS Bank, Mizuho Bank, MUFG Bank, and Sumitomo Mitsui Banking Corporation, participated in the initial financing.

“Participation from the global lenders reinforces the potential of city gas distribution in its role as a transition fuel,” said Parag Parikh, CFO of ATGL, India’s leading city gas distribution (CGD) company.

“This financing framework will drive ATGL’s sustained growth and will be a stepping-stone for future financing based on its capital management plan which will create a long-term value for all our stakeholders,” he added.

The facility will fast-track the capital expenditure program enabling ATGL to rapidly expand its CGD network into its 34 authorised Geographical Areas (GAs) across 13 states. The expansion will deepen the penetration of Piped Natural Gas (PNG) and Compressed Natural Gas (CNG) infrastructure, creating an ecosystem for a gas-based economy, said the company.

PNG and CNG usage offer a convenient, cost-effective, reliable and eco-friendly fuel and will further support the government’s vision of increasing the share of natural gas in the energy basket from 6 per cent to 15 per cent by 2030.

ATGL said it has entered into an overall financing framework which enables the company to secure future funding based on its business plan. Given its gas distribution, ATGL is authorised in 34 Geographical Areas and plays a significant role in the nation’s efforts to enhance the share of natural gas in its energy mix. Of the 53 GAs, 34 are owned by ATGL and the balance 19 GAs are owned by Indian Oil-Adani Gas Private Ltd (IOAGPL) – a 50:50 joint venture between Adani Total Gas Ltd and Indian Oil Corporation Ltd.