Wabag, ADB in Rs 200 cr strategic funding tie-up

CHENNAI: VA Tech Wabag, a leading pure play water technology company, has signed an agreement with Asian Development Bank (ADB) towards raising Rs 200 cr through unlisted Non-Convertible Debentures (NCD) carrying a 5 year and 3 months’ tenor which will be subscribed by ADB over a 12 month timeframe.

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.

Skandaprasad Seetharaman, chief financial officer, 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. We have been working for many years on projects funded by multilateral agencies including ADB.”

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.”

Wabag is a global leader in the water industry backed by rich experience spanning over 98 years globally and over 25 years in India. Being a pure-play water technology multinational, Wabag offers a complete range of technologies and services for total water solutions in municipal and industrial sectors. It has developed three dedicated R&D centres in Austria, India, and Switzerland.

KEY HIGHLIGHTS:

• ADB’s first investment in a water sector company in India

• Will raise Rs 200 cr via unlisted non-convertible debentures carrying a 5 years and 3 months tenor which will be subscribed by ADB over a 12 month period

• Part of ongoing debt optimisation efforts of Wabag through long-term and low-cost funding sources

• Global leader in water industry backed by rich experience spanning over 98 years globally and over 25 years in India