The Asian Development Bank (ADB) has signed a $25 million or Rs 200 crore debt facility with VA Tech Wabag to support sanitation and water security through the development of new sewage treatment plants in India.
The board of Va Tech Wabag approved the proposal for fundraising by way of issuance of non-convertible debentures (NCDs) up to Rs 200 crore to ADB on a private placement basis.
The issue could be done in one or more tranches/series, subject to necessary approvals, permissions, consents and sanctions as may be required. The tenure of the debentures is 5 years and 3 months.
This will be ADB’s first investment in a Water sector company in India and it will also provide technical assistance of up to $35,000 to enhance Wabag’s capacity to assess and mitigate environmental and social risks for future projects.
“The disposal of wastewater without proper treatment has put significant pressure on India’s already scarce water resources and the quality of those resources,” said ADB’s Private Sector Operations Department Director General Suzanne Gaboury.
Further, the board has also approved the appointment of Integrated Registry Management Services as the registrar and transfer agent (RTA) with immediate effect for issuance/allotment of the above-said NCD to the ADB.
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