AGP CGD India enters Rs 518 cr loan pact with L&T Infrastructure Finance
In all, AG&P CGD has secured 12 CGD licenses for 25 years from PNGRB
AGP CGD India (AG&P CGD), a subsidiary of Singapore-based AG&P Group, has entered into an Rs 518 crore (around $72.2 million) term loan agreement with L&T Infrastructure Finance Company (L&T Infrastructure Finance), a subsidiary of L&T Finance Holdings.
The finance will be utilised to develop the City Gas Distribution (CGD) networks of AG&P CGD in Jodhpur, Barmer and Jaisalmer in Rajasthan and Ramanathapuram in Tamil Nadu.
The company holds exclusive licenses to build CGD networks to sell natural gas in these two Geographic Areas (GAs) in addition to 10 other GAs across India.
In all, AG&P CGD has secured 12 CGD licenses for 25 years from the government of India’s Petroleum & Natural Gas Regulatory Board (PNGRB) in the ninth and 10th rounds of bidding.
The licenses allow the company to supply natural gas to 12 GAs covering 28 districts in Andhra Pradesh, Karnataka, Kerala, Rajasthan and Tamil Nadu, making the company the largest foreign player in India’s CGD sector.
The company is building over 1,500 CNG stations, supported by 1,800 km of steel pipelines which will run across the length and breadth of the geographies awarded, creating thousands of jobs for locals.
Deloitte India Corporate Finance and Restructuring Services is financial adviser on the deal.