ICRA Assigns 'ICRA AA-/Stable' Rating to Rs 990 crore Long-Term Bank Facilities of ACME Solar’s project in Rajasthan

ICRA has assigned 'ICRA AA-/Stable’ rating to long-term bank facilities of ACME Dhaulpur Powertech Private Limited (“ADPPL”), wholly owned subsidiary of ACME Solar Holdings Limited (“Acme Solar”). This rating is assigned to 300 MW ISTS solar power project located in Jaisalmer, Rajasthan for its INR 990 crores term loan facility from Indian Renewable Energy Development Agency Limited (“IREDA”). The rating is expected to assist in reducing the cost of borrowings for the project as per agreed covenant of lenders . This is second AA- rating for project on top of similar rating from CRISIL. Plant is operational since January 2025 and achieving CUF of 29.05% since commissioning.

ICRA cited experienced sponsor, revenue visibility, strong debt coverage metrics, timely payments and strong counterparty as key strengths underpinning AA-/Stable rating. The rating reflects ADPPL’s strong operational profile supported by a 25-years Power Purchase Agreement (PPA) with Solar Energy Corporation of India Limited (SECI). Further, ICRA noted that competitive project cost, reduction in cost of borrowings and satisfactory generation performance are expected to lead to strong debt coverage metrics for the project. 

Outlook: Stable

The Stable outlook factors in the steady cash flow visibility offered by the long-term PPA, a satisfactory generation level and the timely collections expected from the offtaker, which is expected to lead to healthy debt coverage and liquidity level.