HomeBusinessAdani Transmission's $700 Million revolving loan gets the 'green loan" tag

Adani Transmission’s $700 Million revolving loan gets the ‘green loan” tag

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Adani Transmission Limited (ATL), India’s largest private sector power distribution and transmission company, announced Wednesday that its $700 million revolving loan was tagged by Sustainalytics as a ‘green Loan’.
Sustainalytics (a Morningstar Company) provides environmental, social and governance research, ratings, and data to institutions and companies.
Adani Transmission Limited, MD and CEO, Anil Sardana said that ATL had signed the energy compact goals of COP26 as well as the energy compact with UN November 2021.
Sardana explained that Sustainalytics’ SPO was a testimony to Adani Transmission’s overall philosophy of transitioning to green energy through increasing renewable power within the overall grid. This is in keeping with India’s climate change commitment.
Sustainalytics issued an independent SPO on alignment of the framework with current market standards. It also assessed the credibility and impact of eligible project categories.
Sustainalytics has opined that ATL’s green loan framework aligns to the four core components of the green loan principles 2021 on project evaluation & selection, use of proceeds and associated contribution to sustainable development goals, management of proceeds and reporting.

In Gujarat and Maharashtra, the projects related to the $700 Million revolving loan are currently being implemented.
These projects in Gujarat are part of the Government of India’s Green Energy Corridor Projects, (GEC) which are dedicated to the transmission and evacuation of renewable energy.
These projects are being implemented in Maharashtra to enhance Mumbai’s transmission systems by increasing grid stability and providing stable transmission networks. This shall encourage a greater share of renewable energy into the overall grid mix, ensuring that green energy is more accessible to the end users.
The eligible category investments will be used to transmit clean energy and support the UN Sustainable Development Goals (7 (Ensure universal access and reliability to modern, affordable and reliable energy services, increase the proportion of renewable energy in global energy mix); and SDG (9 (Develop high-quality, reliable, sustainable, resilient infrastructure that supports economic development and human well being, including trans-border infrastructure.
Adani stated that the revolving loan reflects the overall development strategy of its portfolio companies. The framework was created in-house and is committed to the highest standards of due diligence.
ATL stated that its business strategy is focused on reaching Sustainable Development Goals (SDGs), across all of its activities.
Sustainalytics has certify that ATL shows its commitment towards sustainability through its environmental strategy. It is focused on creating resilient infrastructure, operational excellence, and protecting ecological services.

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