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.

ACME Solar Holdings Limited , a leading player in the renewable energy sector, has successfully secured a significant refinancing deal for one of its key projects in Rajasthan. The company announced that it has obtained Rs 1,100 crore in refinancing from the State Bank of India (SBI) for its subsidiary's 300 MW renewable energy project in the state.

Refinancing Details

The refinancing arrangement brings substantial benefits to ACME Solar:

• Loan Amount: Rs 1,100 crore
• Lender: State Bank of India (SBI)
• Tenure: Approximately 17 years
• Cost Reduction: Financing costs reduced by about 100 basis points

Project Highlights

The 300 MW renewable energy project in Rajasthan, for which the refinancing has been secured, showcases promising operational metrics:

• Operational Period: About 6 months
• Performance: Maintaining optimum capacity utilization factor (CUF) levels
• Subsidiary Rating: CRISIL AA-

Strategic Implications

This refinancing aligns with ACME Solar's broader strategy to optimize its financial structure:

1. Cost Optimization: The deal aims to reduce financing costs across the company's portfolio.
2. Credit Profile Enhancement: The refinancing is expected to strengthen ACME Solar's overall credit profile.
3. Operational Stability: The project's consistent performance in maintaining optimal CUF levels demonstrates operational efficiency.

Company Overview

ACME Solar Holdings Limited has established itself as a significant player in the renewable energy sector:

• Operational Capacity: 2,890 MW
• Diverse Portfolio: Includes solar, wind, storage, and hybrid solutions
• Integrated Approach: In-house EPC (Engineering, Procurement, and Construction) and O&M (Operations and Maintenance) capabilities

Market Position

The company's ability to secure this refinancing from SBI, one of India's largest public sector banks, underscores its strong market position and creditworthiness. The CRISIL AA- rating of the subsidiary further attests to its financial stability and operational excellence.

Future Outlook

With this refinancing, ACME Solar is well-positioned to:

1. Pursue capacity growth in the coming years
2. Further strengthen its financial position
3. Potentially achieve rating upgrades, enhancing its credit profile

This move by ACME Solar reflects the growing confidence in India's renewable energy sector and the increasing willingness of major financial institutions to support sustainable energy projects.