Anzen India Energy Yield Plus Trust maintains 1.91x security cover in Q1FY27
Anzen India Energy Yield Plus Trust reported a 1.91x market value security cover for Q1FY27, satisfying SEBI’s Regulation 54 requirements. Statutory auditors verified full compliance with covenants, with no breaches detected. The trust’s asset base, comprising investments in transmission and solar SPVs, provides substantial coverage over ₹14,534.01 million in outstanding secured debt.
*this image is generated using AI for illustrative purposes only.
Anzen India Energy Yield Plus Trust has maintained a security cover of 1.91 times on a market value basis for its secured listed non-convertible debentures as of June 30, 2026, confirming compliance with Securities and Exchange Board of India (SEBI) regulations for the first quarter of FY27. The trust, managed by EAAA Real Assets Managers Limited, disclosed that its asset base continues to provide substantial coverage over outstanding debt obligations, ensuring investor protection and regulatory adherence.
The submission was made pursuant to Regulation 54 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, read with SEBI Circular No. SEBI/HO/MIRSD/MIRSD_CRADT/CIR/P/2022/67 dated May 19, 2022. Statutory auditors S R B C & Co LLP issued the security cover certificate on August 4, 2026, verifying that the trust has maintained at least 100% security cover as required by the Debenture Trust Deeds and SEBI norms. The certificate was submitted to the stock exchanges and the debenture trustee, Catalyst Trusteeship Limited.
Security Cover Metrics
The trust’s security position is derived from both book values and market valuations of its underlying assets, primarily investments in special purpose vehicles (SPVs) operating transmission and solar energy infrastructure. The following table outlines the key security cover ratios:
| Metric | Value |
|---|---|
| Exclusive Security Cover (Book Value) | 0.02x |
| Pari-Passu Security Cover (Book Value) | 1.73x |
| Security Cover (Market Value) | 1.91x |
On a book value basis, the exclusive security cover stands at 0.02 times, calculated against assets with exclusive charge. However, the pari-passu security cover is significantly higher at 1.73 times, reflecting the broader pool of assets shared among debt holders. The market value-based security cover of 1.91 times provides a more conservative and robust measure of asset adequacy, incorporating enterprise valuations of subsidiaries.
Asset Composition and Valuation
The trust’s assets securing the debentures include equity shares, non-convertible debentures (NCDs), optionally convertible debentures (OCDs), and unsecured loans extended to its SPVs. As of June 30, 2026, the total book value of investments in subsidiaries was ₹29,704.14 million, while unsecured loans to subsidiaries amounted to ₹32,381.07 million. These assets carry a pari-passu charge in favor of the debenture trustee.
Enterprise values of the SPVs were determined based on a valuation report dated August 3, 2026, prepared by independent registered valuer Jayesh Kumar Shah. The valuation considers tariff revenues under Transmission Service Agreements (TSAs) and Power Purchase Agreements (PPAs) for operational assets. Key subsidiaries contributing to the security cover include Darbhanga-Motihari Transmission Company Limited, NRSS XXXI (B) Transmission Limited, Solzen Urja Private Limited, and Kudgi Transmission Limited.
Debt Obligations and Covenant Compliance
The total outstanding amount of secured listed non-convertible debentures as of June 30, 2026, was ₹14,534.01 million, including accrued interest. This comprises two series: Series C with an outstanding amount of ₹7,000.00 million and Series D with ₹7,701.56 million (before adjustments). The trust also holds other liabilities, including bank borrowings of ₹22,225.21 million, which share pari-passu charge over certain assets.
S R B C & Co LLP confirmed that the trust complied with all financial covenants stipulated in the Debenture Trust Deeds dated February 18, 2025, and November 6, 2025. Testing of the Debt Service Coverage Ratio, which constitutes a Cash Trap Trigger Event, was performed by CA Ketan Shah & Co., Chartered Accountants, with no breaches identified. Other covenants related to Consolidated Net Debt/Value of InvIT Assets and Consolidated Net Debt/EBITDA are tested annually after the end of each financial year.
What the Numbers Show
The disparity between the exclusive security cover (0.02x) and the pari-passu/market value covers (1.73x and 1.91x respectively) highlights the structure of the trust’s collateral. While only a small fraction of assets carries an exclusive charge, the majority of the security is provided through pari-passu arrangements over a diversified portfolio of infrastructure SPVs. The market value cover exceeding 1.9 times indicates a strong buffer against potential declines in asset values, reinforcing the credit quality of the listed debentures. This robust coverage aligns with the trust’s focus on stable, cash-generating infrastructure assets with long-term revenue contracts.
Historical Stock Returns for Anzen India Energy Yield Plus Trust
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| 0.0% | -0.54% | 0.0% | +9.58% | +9.56% | 0.0% |
How might fluctuations in power tariff revenues under existing TSAs and PPAs impact the market value security cover in subsequent quarters?
What are the implications of the significant bank borrowings (₹22,225.21 million) sharing pari-passu charge on the priority of recovery for NCD holders in a stress scenario?
Could the reliance on market valuations rather than book values for security cover expose investors to volatility if infrastructure asset valuations correct downwards?
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