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Fitch Ratings has assigned India Cleantech Energy Ltd's (ICEL's) proposed US dollar senior secured notes due 2026 an expected rating of BB-minus.
The outlook is stable, it said. The rating on notes reflects credit profile of a restricted group of 12 entities (Acme RG1) that are fully owned by Acme Solar Holdings Pvt Ltd. Acme RG1 operates solar generation assets with combined capacity of 450 MW (or 605 MWp) in eight Indian states. ICEL is an orphan financing vehicle incorporated in Mauritius that will be held by a trust and its ownership is not linked to Acme Solar Holdings. ICEL will use the proceeds of the proposed notes to subscribe to non-convertible debentures (NCDs) denominated in rupees to be issued by the entities in the restricted group. ICEL will not undertake any business activity other than investing in the NCDs. The operating entities in Acme RG1 will use the proceeds of NCDs to repay existing project debt and address prepayment penalties and transaction costs. Any remaining proceeds will be upstreamed to Acme Solar Holdings. Fitch said the rating benefits from fully contracted revenues of operating assets whose counterparties include sovereign-owned entities and distribution companies owned by various Indian states. The rating is also supported by the adequate financial profile of the restricted group. All of Acme RG1's capacity is under long-term power purchase agreements (PPAs) with the majority (93 per cent of capacity) with tariffs fixed through the PPA terms which extend beyond the tenor of the proposed US dollar notes. (ANI)
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