VA Tech Wabag has signed an agreement with 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 optimization 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 key milestone, Skandaprasad Seetharaman, Chief Financial Officer of WABAG 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 WABAG’s leadership in the water sector and its focus on clean, green, and sustainable technologies. We have been working for many years on projects funded by multilateral agencies including ADB. This is indeed now 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.”
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.