WABAG, Asian Development Bank tie up to raise Rs 200 crore
Chennai, Nov 25 (PTI) Water treatment player Va Tech WABAG Ltd has signed an agreement with Asian Development Bank to raise Rs 200 crore through unlisted non-convertible debentures, the company said on Friday.
This would be Asian Development Bank's first investment in a water sector company in the country.
"..signed an agreement with Asian Development Bank towards raising Rs 200 crore through unlisted non-convertible debentures carrying a five year and three months tenure which will be subscribed by ADB over 12 months," Va Tech WABAG said in a statement.
The capital raised would be used for working capital requirements of the company and would be within the current borrowing limits thereby not increasing the debt-level of the company, it said.
"This is an important milestone for WABAG, as we add another feather to our cap with this strategic funding tie-up with ADB. ADB's decision to collaborate with WABAG, in their first private sector water investment in India, is a key validation of its leadership," said chief financial officer of the company Skandaprasad Seetharaman.
"This is, indeed, a great moment for us to be directly associated with ADB, showing ADB's confidence in WABAG's credibility and credentials in the water sector," he said.
WABAG has developed three dedicated research and development centres in Austria, India, and Switzerland.
ADB (private sector operations) director general Suzanne Gaboury said, "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." PTI VIJ NVG NVG