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Sterlite Grid 32 (SGL32) demonstrates strong financial health and investor confidence by successfully refinancing its Mumbai Urja Transmission (MUML) project. The ₹2,450 crore refinancing via listed Non-Convertible Debts (NCDs) marks a significant step in supporting India's renewable energy sector and strengthening transmission infrastructure. This achievement underscores SGL32's commitment to sustainable energy solutions and its robust financial strategy.
Sterlite Grid 32 (SGL32) is celebrating a major financial accomplishment with the successful refinancing of its Mumbai Urja Transmission (MUML) project through listed Non-Convertible Debts (NCDs), amounting to ₹2,450 crore. This milestone reflects growing confidence in India's renewable energy sector and SGL32's pivotal role in its expansion.
The refinancing showcases the company's robust financial strategy and its ability to attract significant investment for critical infrastructure projects. Following the demerger of Sterlite Power Transmission's infrastructure business into Sterlite Grid 5 (SGL5) and the subsequent Joint Venture (JV) with GIC of Singapore, SGL32 is set to execute all transmission projects in India.
"This is the first Listed NCD issuance of Sterlite Grid 32 after its Joint Venture with GIC of Singapore," the company stated, highlighting the significance of this financial instrument. The NCDs have been rated AA+ stable by CRISIL Rating, reinforcing investor confidence in the project's stability and long-term potential. Prominent institutions such as The National Bank for Financing Infrastructure and Development (NaBFID) and India Infrastructure Finance Company (IIFCL) emerged as successful bidders, further validating the project's appeal.
The MUML Project, secured in June 2020 through Tariff-Based Competitive Bidding (TBCB), is a green energy corridor project operating on a BOOM (build, own, operate, maintain) basis for 35 years. This project is instrumental in strengthening the transmission system across the western and northeastern regions of India, specifically in Maharashtra, Gujarat, Assam, and Arunachal Pradesh.
The MUML Project's importance cannot be overstated, as it promises to significantly enhance the transmission system in the Mumbai Metropolitan Region. It has the capacity to carry over 2,000 megawatts (MW) of additional power to Mumbai and Navi Mumbai, ensuring a reliable and sustainable energy supply for the region.
SGL32 Director Pratik Agarwal emphasized the strategic importance of this refinancing: "This initiative is not merely a financing success but a stepping stone to our future financing strategy. This transaction has helped us diversify from its traditional sources of debt financing to debt capital market financing. The JV now has access to stronger alternative source of funds."
The successful closure of the ₹2,450 crore funding underscores the strong belief in India's rapidly expanding renewable power sector. The MUML project is set to play a vital role in facilitating the evacuation of 20 GW of renewable energy from Rajasthan, contributing significantly to India's green energy goals. This financial achievement positions Sterlite Grid 32 for continued success in supporting India's sustainable energy future.
