Orient Green Power’s Subsidiary Beta Wind Farm Credit Rating Upgraded
Filing Summary
Orient Green Power Company Limited announced a credit rating upgrade for its subsidiary, Beta Wind Farm Private Limited, by Infomerics Valuation and Rating Limited. The long-term bank facility rating improved from IVR BBB-/Stable to IVR BBB/Stable, with a concurrent reduction in rated debt from ₹599 crore to ₹519 crore. This upgrade follows improvements in Beta’s PLF performance, liquidity position, and financial risk profile. The rating reflects stable revenue visibility through power purchase agreements and experienced promoters. The upgrade may lead to better financing terms and reduced interest rates.
Orient Green Power Company Limited has reported a credit rating upgrade for its subsidiary, Beta Wind Farm Private Limited, by Infomerics Valuation and Rating Limited. The long-term bank facility rating has been upgraded from IVR BBB-/Stable to IVR BBB/Stable. The rated debt for Beta has been reduced from ₹599 crore to ₹519 crore. This announcement complies with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The credit rating upgrade is attributed to several factors. There has been an improvement in the PLF and operating performance due to the completion of component upgrades and enhanced machine availability in Andhra Pradesh. The liquidity position has improved with stable revenue visibility and maintenance of the receivable cycle, along with the creation of a Debt Servicing Reserve Account (DSRA). The financial risk profile has also improved, evidenced by a reduction in total debt and interest rate reductions, strengthening Beta’s capital structure and debt protection metrics.
The rating reflects stable revenue visibility through power purchase agreements with various distribution companies. Beta Wind Farm sells power to corporate and industrial customers under a group captive scheme in Tamil Nadu and to distribution companies in Andhra Pradesh, Gujarat, and Karnataka. The rating also considers the experienced promoters and their established presence in the renewable energy sector. However, moderate debt protection metrics, operating efficiency, and inherent risks in wind power projects are noted as partial offsets to these strengths.
The credit rating upgrade is expected to result in a reduction of interest rates by 25 basis points from IREDA, as part of loan covenants. This reduction is anticipated to sustain with the improved rating, potentially leading to better financing terms and increased financial flexibility. The upgrade may also reinforce confidence among creditors and stakeholders, improving access to capital for renewable energy projects.
Infomerics Valuation and Rating Limited is a credit-rating agency in India, providing rating and valuation services to corporate borrowers. It is registered with SEBI and accredited by RBI, offering services such as bank loan ratings and bond ratings. Infomerics’ ratings reflect creditworthiness, financial strength, and repayment capabilities based on comprehensive evaluations of business and financial risk metrics.
Orient Green Power Company Limited is engaged in the development, acquisition, and operation of wind and solar power projects across India. The company focuses on sustainable growth and financial discipline, contributing to India’s clean-energy targets.