Sterlite Grid 32 Ltd (SGL32), a leader in power transmission development, has successfully refinanced its Mumbai Urja Transmission Limited (MUML) Project by issuing listed Non-Convertible Debentures (NCDs). This is a significant milestone in the company’s financial strategy after it had recently entered into a joint venture (JV) with GIC of Singapore.
New Financing Strategy with Listed NCDs
Sterlite Grid 32 Ltd issued its first listed NCDs after the JV with GIC, highlighting its growing infrastructure influence. CRISIL Rating has given these NCDs an AA+ stable rating. The National Bank for Financing Infrastructure and Development (NaBFID) and India Infrastructure Finance Company Limited (IIFCL) successfully placed the winning bids. Additionally, the Bombay Stock Exchange now has listed the NCDs.
Pratik Agarwal, Director of Sterlite Grid 32 Ltd, added, “This precedent-setting transaction marks a significant achievement for the business, showcasing our ability to secure cost-efficient financing while maintaining strong investor confidence. The success of this transaction highlights our commitment to deliver value to our stakeholders and aligns with our vision of advancing India’s green energy infrastructure. This initiative is not merely a financing success but a steppingstone to our future financing strategy”.
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Strategic Joint Venture with GIC
This refinancing marks a milestone for SGL32, following the demerger of Sterlite Power Transmission’s infrastructure business into SGL5. SGL5 entered a JV with GIC of Singapore, enabling the execution of all transmission projects in India through SGL32. The JV provides access to more diverse and robust financing sources, particularly from the debt capital markets.
In June 2020, the MUML project was awarded through Tariff-Based Competitive Bidding (TBCB) to develop a green energy corridor on a BOOM (build, own, operate, maintain) basis for 35 years. This initiative is vital for enhancing transmission systems across Maharashtra, Gujarat, Assam, and Arunachal Pradesh.
The MUML Project will strengthen transmission in Mumbai, adding over 2,000 MW of capacity to supply Mumbai and Navi Mumbai. It will enable the evacuation of 20 GW of renewable energy from Rajasthan, boosting India’s renewable integration with the grid.
The INR 2,450 crore funding closure for the MUML project highlights strong confidence in India’s rapidly growing renewable power sector. As India expands its green energy capacity, MUML will be key in integrating this power into the national grid.