Wabag inks agreement with ADB to raise Rs 200 cr through NCD

Mumbai, Water technology player VA Tech Wabag on Friday said it has signed an agreement with Asian Development Bank (ADB) to raise Rs 200 crore through unlisted non-convertible debentures (NCDs) carrying a 5-year and 3-month tenor. This NCD will be subscribed by ADB over a 12-month period, Wabag said in a statement.

The Rs 200 crore capital raised through this NCD issuance will be used towards working capital requirements of Wabag and will be within the current borrowing limits, which will, therefore, not increase the debt levels of the company, it added.

"This is an important milestone for us as we add another feather to our cap with this strategic funding tie-up with ADB. ADB's decision to collaborate with us is a key validation of its focus on clean, green and sustainable technologies. We have been working for many years on projects funded by multilateral agencies, including ADB," Wabag Chief Financial Officer Skandaprasad Seetharaman 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, ADB Private Sector Operations Department 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," she added.