WD News: VA Tech WABAG has signed an agreement with the Asian Development Bank (ADB) towards raising Rs. 200 crores through unlisted Non-Convertible Debentures (NCD) carrying a 5 years and 3 months tenor, which will be subscribed by ADB over a 12 month period. This will be ADB’s first investment in a water sector company in India.
This is in continuation to the ongoing debt optimisation efforts of the company through long-term and low-cost funding sources. The capital raised through this NCD issuance will be used towards working capital requirements of the company and this will be within the current borrowing limits, thereby not increasing the debt levels of the company.
Commenting on this development, Mr Skandaprasad Seetharaman, Chief Financial Officer of WABAG said, “ADB’s decision to collaborate with WABAG, in their first private sector water investment in India is a key validation of WABAG’s leadership in the water sector and its focus on clean, green, and sustainable technologies.”
Ms. Suzanne Gaboury, ADB Private Sector Operations Department Director General, said, “The disposal of wastewater without proper treatment has put significant pressure on India’s already scarce water resources and the quality of those resources. This project is ADB’s first private sector financing in India’s water sector and will help to crowd in urgently needed international and domestic financing for the sector to ease water stress as demand increases.”
Source and image courtesy: VA Tech WABAG
