Sterlite Grid 32 gets Rs 2,450 cr via listed NCDs to refinance MUML project

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Power transmission solution provider Sterlite Grid 32 Ltd (SGL32) on Monday announced securing Rs 2,450 crore through listed non-convertible debentures (NCDs) to refinance its Mumbai Urja Marg Ltd project.

The National Bank for Financing Infrastructure and Development (NaBFID) and India Infrastructure Finance Company Limited (IIFCL) have emerged as the successful bidders to the NCDs that have been listed on the Bombay Stock Exchange (BSE), according to a statement.

This is the first listed NCD issuance of Sterlite Grid 32 Limited after its joint venture with GIC of Singapore. The NCDs are rated AA+ stable by CRISIL Ratings.

The infrastructure business of Sterlite Power Transmission Ltd was demerged into Sterlite Grid 5 Limited (SGL5) effective October 8, 2024.

SGL5 has recently entered into a joint venture with GIC of Singapore, following which SGL5 is to execute all its transmission projects in India through Sterlite Grid 32 Limited (SGL32).

Pratik Agarwal, Director, Sterlite Grid 32 Ltd, said the joint venture now has access to stronger alternative source of funds and the transaction has helped the company diversify from its traditional sources of debt financing to debt capital market financing.

"This precedent-setting transaction marks a significant achievement for the business, showcasing our ability to secure cost-efficient financing while maintaining strong investor confidence," he added.

The JV platform had won MUML project in June 2020 through tariff-based competitive bidding to execute the green energy corridor project on BOOM (build, own, operate, maintain) basis for a period of 35 years.

MUML project has established a transmission system covering western region and northeastern region spanning across Maharashtra, Gujarat, Assam, and Arunachal Pradesh.

The project is critical for strengthening the transmission system in the Mumbai Metropolitan Region with the potential to carry more than 2,000 MW of additional power to Mumbai and Navi Mumbai.

According to SGL32, the closure of Rs 2,450 crore funding manifests confidence in India's rapidly expanding renewable power sector. Even as India builds sizeable green capacity, it needs to be integrated seamlessly with the national grid.

MUML will play a critical role in this mega transmission project that will facilitate the evacuation of 20 GW of renewable energy from Rajasthan.

SGL32 has a portfolio of 10 completed and under-construction power transmission projects in eight states -- Rajasthan, Gujarat, J&K, Karnataka, Haryana, Maharashtra, Goa and Kerala.

SGL32's India footprint covers approximately 4,500 kms of transmission lines with a total capital expenditure of Rs 25,000 crore.