ICRA assigns AA-/Stable Rating for ACME Sikar Solar 300 MW project, demonstrating competitive project and financing cost
ICRA Limited has assigned ‘ICRA AA-/Stable’ credit rating to ACME Sikar Solar Pvt Ltd (ASSPL) INR 1,209 crore long term debt - wholly owned subsidiary of ACME Solar Holdings Ltd. This Rating will potentially enable in reducing ACME Sikar’s financing cost by nearly 25 bps which is over and above the rate reduction of 170 bps achieved via recent refinancing from Yes Bank Limited.
The ICRA Rating factors in ACME Sikar’s 25-year power purchase agreement (PPA) with Solar Energy Corporation of India (SECI) , thus eliminating the demand and pricing risks. Additional comfort is drawn from the strong credit profile of SECI, leading to a timely realisation of payments within 10 days of the bills issued. The rating also reflects the competitive project cost of ACME Sikar and recent refinancing at competitive interest rate and favourable financing terms, enabling the project to maintain a healthy cumulative debt service coverage ratio.
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