ACME Solar Holdings Limited , a leading integrated renewable energy firm, has received an enhanced credit rating facility with the rated amount increased from Rs 1,000 crore to Rs 1,500 crore. The company's highest-ever credit rating of 'ICRA AA-/Stable' from ICRA Limited has been reaffirmed for its long-term non-fund based bank facilities.

Enhanced Credit Rating Details

The company announced the credit rating enhancement through a regulatory filing, providing the following details:

This significant enhancement in the credit rating facility amount represents a 50.00% increase from the previous rated amount, indicating ICRA's continued confidence in the company's financial strength and operational capabilities.

Rating Rationale and Company Strengths

ICRA's rating decision reflects several key strengths of ACME Solar:

• Diversified Portfolio: The company's assets are spread across multiple locations with central government off-takers, reducing geographical and operational risks
• Revenue Visibility: Long-term power purchase agreements provide stable and predictable cash flows
• Operational Excellence: Optimal generation performance across its portfolio
• Financial Health: Comfortable debt coverage metrics, indicating strong financial management

Operational Capacity and Market Position

ACME Solar operates as an integrated renewable energy firm with 2,890 MW of operational capacity. The company offers diverse solutions including solar, wind, storage, and hybrid technologies, supported by in-house engineering and construction capabilities. This vertical integration and diverse technology mix position ACME Solar as a comprehensive player in the renewable energy sector.

Financial Implications

The enhanced credit rating facility and reaffirmed 'ICRA AA-/Stable' rating are expected to provide several benefits:

• Improved Financial Flexibility: The increased facility amount from Rs 1,000 crore to Rs 1,500 crore provides enhanced access to non-fund based banking facilities
• Reduced Borrowing Costs: The maintained high credit rating supports favorable interest rates on debt facilities
• Strengthened Market Position: The rating enhancement reflects the company's improved financial profile following its successful IPO

The rating rationale issued by ICRA Limited is available on their official website, providing detailed insights into the factors supporting this credit rating enhancement. As the renewable energy sector continues to expand, ACME Solar's strengthened credit profile positions it well to capitalize on growth opportunities and expand its operational footprint.

ACME Solar Holdings has received a significant boost for its 250 MW renewable energy project, as credit rating agency ICRA upgrades the project's rating to 'ICRA AA-/Stable' from 'ICRA A+/Stable'. This upgrade reflects an improved creditworthiness assessment for the renewable energy venture.

Project Details and Rating Rationale

The rating upgrade applies to ACME Aklera Power Technology Private Limited (AKPTPL), a wholly-owned subsidiary of ACME Solar Holdings Limited. Specifically, it covers the INR 1,072.00 crore term loan facility for the 250 MW renewable energy capacity located in Rajasthan. The loan is provided by a consortium including Bank of America, Standard Chartered Bank, and India Infradebt Limited.

ICRA's decision to upgrade the rating is based on several key factors:

1. Strengthening of ACME Solar's credit profile
2. Robust revenue visibility
3. Healthy generation performance
4. Successful refinancing of previous loan at favorable terms

Strong Operational Profile

The project's strong operational profile is underpinned by a 25-year Power Purchase Agreement (PPA) with Solar Energy Corporation of India Limited (SECI). This long-term agreement ensures predictable cash flows, while SECI's track record of timely payments further enhances the project's credit profile.

About ACME Solar Holdings

ACME Solar Holdings is a leading integrated renewable energy player in India. The company boasts a diversified portfolio that includes:

• Solar energy
• Wind energy
• Energy storage solutions
• Flexi Dispatchable Renewable Energy (FDRE)
• Hybrid solutions

With an operational capacity of 2,890 MW, ACME Solar has established itself as a significant player in the renewable energy sector. The company's in-house Engineering, Procurement, and Construction (EPC) and Operations and Maintenance (O&M) divisions enable end-to-end development and maintenance of its plants. This integrated approach allows ACME Solar to deliver projects in a time and cost-effective manner while ensuring best-in-class operating performance.

Industry Impact

The rating upgrade for ACME Solar's project is a positive signal for the renewable energy sector in India. It demonstrates the growing confidence of financial institutions in the viability and sustainability of large-scale renewable energy projects. As India continues to push for increased adoption of clean energy, such upgrades may encourage further investments in the sector.

This development aligns with India's ambitious renewable energy targets and underscores the critical role that companies like ACME Solar play in the country's transition to a more sustainable energy future.