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Rs 30,000-cr bond opportunity in power transmission: Crisil

The credit risk profile of ISTS projects is strong because of assured cash flows, low operations and maintenance

Amritha Pillay  |  Mumbai 

power transmission, ISTS projects
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The boost given to the sector in the country for the last few years may lead to a refinance opportunity of Rs 30,000 crore through bonds, rating agency said in a statement on Wednesday. estimates (ISTS) projects present a Rs 30,000 crore refinancing opportunity for the over the next 3 years as 14,000 circuit km of under-construction lines come on stream,” the company said in its press statement. The estimated Rs 30,000 crore compares to a lower Rs 5,000 crore worth of raised for operational transmission assets in the last couple of years. “The credit risk profile of operational is strong because of assured cash flows, low operations and maintenance (O&M), and low counterparty risk.

This appeals to bond investors, as is evident from bond issuances of Rs 5,000 crore for operational over the past couple of years,” said in its statement. Nitesh Jain, Director, Ratings added, “Given the milieu, expects the credit profiles of ISTS projects, once operational, to remain healthy, and present a fairly large, low-risk investment opportunity to

First Published: Wed, December 20 2017. 19:10 IST
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