WABAG secures Financial Closure of its second HAM Project and partners with PTC India Financial Services

VA TECH WABAG LIMITED ('WABAG'), a leading Pure Play Water Technology Indian Multinational Company has completed the Financial Closure for its Hybrid Annuity Model ('HAM') project received from Bihar Urban Infrastructure Development Corporation ('BUIDCO').

WABAG had earlier secured a contract worth INR 1,187 Crore order from Bihar Urban Infrastructure Development Corporation ('BUIDCO') under the prestigious National Mission for Clean Ganga (`NMCG') Scheme to develop Sewage Treatment Plants (`STR) of 150 MLD capacity along with sewerage network of over 453 km in the Digha and Kankarbagh zones of Patna, one of the most populous cities on the banks of River Ganga.

WABAG will execute Engineering, Procurement and Construction ('EPC') portion of Sewage Treatment Plant under HAM,this project over 24 months followed by O&M of 15 years. The STPs will produce renewable energy from biogas to run the plants leading to lower operational expenses.

This project comprises of a Design, Build and Operate (DB0') scope worth INR 940 Crore and Hybrid Annuity Model (HAM) scope worth around INR 247 Crore. The EPC portion of the Hybrid Annuity Scope is to be funded through a mix of NMCG Grant, Equity and Debt. 40 per cent will be funded by the NMCG grant during construction period and balance 60 per cent will be funded by a mix of debt and equity.

To meet the project debt funding requirement, WABAG has partnered with PTC India Financial Services Limited ('PFS'). PFS is a leading green infrastructure finance company which provides a vast array of services to the entities in infrastructure sector while contributing to the sustainable development goals of the country. PFS extends debt / mezzanine/ bridge finance to projects, in renewable power generation, transmission, distribution, road HAM / annuity projects, sewage treatment projects, water supply projects, e-mobility projects etc. with aim towards financing sustainable green infrastructure projects and other economic strategy sectors.

We are happy to start this long term partnership with PFS, a leading Financial Institution in the Infrastructure space. With this, WABAG has successfully achieved the financial closure of its second HAM project within this financial year.

Commenting on this milestone achievement, Mr. S Varadarajan, Director & Chief Growth Officer and Head of Capital Projects of WABAG said "It is yet another proud moment for WABAG to achieve Financial Closure of second HAM project in succession under current context in the country. We are happy to have PFS as our partner for financing the debt portion of this project."

Commenting on this milestone achievement, Dr. Pawan Singh, MD & CEO, PTC India Financial Services Limited said "PFS, with this debt funding to the STP project of VA Tech Wabag re-affirms its commitment to support upcoming environment friendly green infrastructure projects in the country."

Shares of VA TECH WABAG LTD. was last trading in BSE at Rs.243 as compared to the previous close of Rs. 237.65. The total number of shares traded during the day was 269035 in over 2378 trades.

The stock hit an intraday high of Rs. 249.35 and intraday low of 232.2. The net turnover during the day was Rs. 65858740.

Source : Equity Bulls

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