ICRA Limited has assigned an ‘ICRA AA-/Stable’ rating to ACME Sikar Solar Pvt Ltd (ASSPL) for its INR 1,209 crore long-term debt. This rating will potentially reduce ACME Sikar’s financing costs by nearly 25 bps. The rating factors in ACME Sikar’s 25-year power purchase agreement with Solar Energy Corporation of India (SECI), eliminating demand and pricing risks.
Credit Rating Assigned
ICRA Limited has assigned an ‘ICRA AA-/Stable’ credit rating to ACME Sikar Solar Pvt Ltd (ASSPL) for its INR 1,209 crore long-term debt. ACME Sikar Solar is a wholly-owned subsidiary of ACME Solar Holdings Ltd.
Factors Influencing the Rating
The ICRA rating factors in several key aspects, including:
ACME Sikar’s 25-year power purchase agreement (PPA) with Solar Energy Corporation of India (SECI), which mitigates demand and pricing risks.
Strong credit profile of SECI, ensuring timely payments within 10 days of bill issuance.
Competitive project cost of ACME Sikar and recent refinancing at competitive interest rates and favorable financing terms, allowing the project to maintain a healthy cumulative debt service coverage ratio.
Project Details
ACME Sikar Solar project has a capacity of 300 MW. The rating will potentially enable a reduction of approximately 25 bps in ACME Sikar’s financing cost, building upon the 170 bps reduction achieved through recent refinancing from Yes Bank Limited.
ACME Solar’s Portfolio
ACME Solar Holdings Limited has a diversified portfolio of 7,770 MW, encompassing solar, wind, storage, FDRE, and hybrid solutions. They have an operational contracted capacity of 2,962 MW, and an additional 4,808 MW under construction, including approximately 16 GWh of BESS installation. The company also has an under-construction PPA signed portfolio of 2,668 MW. They manage end-to-end project development and O&M using an in-house EPC and O&M division.
Source: BSE
