Mumbai: Credit rating agency ICRA has upgraded the credit rating of private equity investor Actis owned renewable energy platform Sprng Energy Pvt Ltd by a notch to A, according to a note on the agency's website.
The agency had previously rated the company's credit rating at A-.
"The rating upgrade factors in the significant increase in aggregate operational renewable capacity under various subsidiaries of Sprng Energy Private Limited (SEPL; Sprng)—1023.5 MW as of April 2021 from 641.5 MW as of March 2020—and the consequent reduction in the execution risks. The operational capacity as of April 2021 includes partly commissioned capacities of Sprng Agnitra Private Limited (229 MW) and Sprng Renewable Energy Private Limited (153 MW), both of which are expected to be fully commissioned by June 2021 and August 2021, respectively, thereby increasing the operational capacity of the Sprng platform to 1191.5 MW. This in turn would enhance the geographic diversification and reduce the exposure to relatively weak discoms for the platform’s operating portfolio," the rating agency said.
It added that Sprng has demonstrated a healthy operational track record and ensured timely payments from most of the counterparties.
"This apart, the rating continues to favourably factor in the benefits arising from the company’s association with Actis Capital (Actis), a leading private equity player with an established track record of successfully executing and monetising renewable energy projects in India. The rating also favourably notes the committed capital of US$ 475 million (~Rs. 3,373 crore)1 by Actis Capital via Actis 4 Funds (AE4) 2 and the availability of shareholder support agreement for majority of the non-fund based limits3 required towards developing renewable energy projects in India under the Sprng energy platform. Further, the rating draws strength from the limited offtake risks due to the presence of long-term power purchase agreements...for the entire capacity of 1661.5 MW (operational and under-construction projects)," the rating agency noted.
