ADB and Wabag sign a $25 million debt facility for sanitation and water security in India

• The capital raised would be used for the company’s working capital needs.
• WABAG has developed three dedicated research and development centers in Austria, Indiaand Switzerland.
• This would be the Asian Development Bank’s first investment in a water sector company in the country.

Water treatment player Va Tech WABAG Ltd has signed an agreement with the Asian Development Bank to raise Rs 200 crore through unlisted non-convertible bonds, the company said on Friday. This would be the Asian Development Bank’s first investment in a water sector company in the country.

“..signed an agreement with the Asian Development Bank to raise Rs 200 crore through unlisted non-convertible bonds with a maturity of five years and three months which will be subscribed by ADB more than 12 months,” Va Tech WABAG said in a statement.

The capital raised would be used for the company’s working capital requirements and would remain within current funding limits, preventing the company’s debt level from increasing, it said.

“This is an important milestone for WABAG as we add another feather to our cap with this strategic financing agreement with ADB. ADB’s decision to partner with WABAG, in their first private sector water investment in India, is an important confirmation of its leadership,” said the company’s chief financial officer Skandaprasad Seetharaman.

“This is indeed a great time for us to be directly associated with ADB, demonstrating ADB’s confidence in WABAG’s credibility and credentials in the water sector,” he said.

WABAG has developed three dedicated research and development centers in Austria, India and Switzerland.

Director General ADB (Private Sector Operations). Susan Gaboury said, “This project is ADB’s first private sector funding in India’s water sector and will help secure urgently needed international and domestic funding for the sector to mitigate water stress as demand increases.”

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