CRISIL Ratings has assigned ‘A-/Stable’ long-term and ‘A2+’ short-term ratings to the bank facilities of SAEL Industries Ltd (SIL), a vertically integrated renewable energy company.
SIL has signed long-term PPAs with several state and central utilities for almost its entire portfolio. This minimises offtake risk as PPAs have been signed for an average of 25 years in the solar IPP space and 25 years in the waste-to-energy (WTE) segment. Furthermore, for about 70% of the operational capacity and over 80% of the under-construction capacity, the offtake agreements have been signed with counterparties such as Solar Energy Corp. of India and Gujarat Urja Vikas Nigam Ltd (GUVNL), which have strong track record of timely payments.
SIL’s credit risk profile is expected to remain stable owing to the steady performance of its operational assets, scale up of IPP capacity, backward integration into solar module manufacturing and moderate leverage levels.
SAEL Industries operates across Agri Waste-to-Energy (AgWtE), utility-scale solar IPPs, battery energy storage systems (BESS), and solar PV module manufacturing. It maintains a solar IPP portfolio of 8.29 GWp (DC) (operational and pipeline), 3.63 GW solar module manufacturing capacity, 165 MW of AgWTE portfolio, and is developing an integrated 10 GW (5 GW solar cell + 5 GW solar module) facility in Greater Noida, Uttar Pradesh. This diversified profile provides comfort in absorbing unexpected risks.
SAEL is backed by investors Norfund and the U.S. International Development Finance Corp. (DFC). The consolidated rating factors in linkages across more than 30 special purpose vehicles (SPVs) and subsidiaries in solar IPP, agri waste-to-energy, and manufacturing operations.
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