Anzen India Energy Yield Plus Trust
Rating reaffirmed at 'Crisil AAA/Stable'; Rated amount enhanced for Bank Debt

Rating Action

Total Bank Loan Facilities Rated	Rs.974.66 Crore (Enhanced from Rs.620 Crore and Rs.295.34 Crore Withdrawn)
Long Term Rating	Crisil AAA/Stable (Reaffirmed)

 

Rs.775 Crore Non Convertible Debentures	Crisil AAA/Stable (Reaffirmed)
Rs.300 Crore Non Convertible Debentures	Crisil AAA/Stable (Reaffirmed)
Rs.700 Crore Non Convertible Debentures	Crisil AAA/Stable (Reaffirmed)

Note: None of the Directors on Crisil Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings.

1 crore = 10 million   

Refer to annexure for Details of Instruments & Bank Facilities

 

Detailed Rationale

Crisil Ratings has reaffirmed its ‘Crisil AAA/Stable' rating on the bank facilities and non convertible debentures of Anzen India Energy Yield Plus Trust (Anzen). Crisil Ratings has also withdrawn its ratings on bank facilities of Rs 295.34 crore on client’s request and receipt of outstanding balance certificate from the lender. The withdrawal is in line with Crisil Ratings' withdrawal policy.

 

Anzen has signed share purchase agreement for acquisition of 74% stake in 11 solar assets from EIYP and one solar asset from SEPL (sponsor; Crisil AA/Stable). The equity value for acquisition for 74% stake is estimated at Rs 1243 crores (including cash and cash equivalents, subject to closing adjustments) which is expected to be funded by debt of upto Rs. 650 crore and raise of upto Rs. 700 crore by additional units issuance. The combined external debt of 12 solar assets is ~Rs. 1886.4 crore as on December 31, 2025. Anzen plans to refinance the debt at SPVs in a restricted group structure while utilizing existing liquidity to reduce the external debt by 12-14% at SPV level. Any deviation from this will remain monitorable.

 

The assets to be acquired with a total capacity of ~606 MW (AC) have an established operational track record of over 6 years with healthy plant load factor (PLF) of 23.35% in fiscal 2025 (23.38% in fiscal 2024). Further, the assets are well-diversified across 5 states and more than 80% of the capacity is tied with strong counterparties like Solar Energy Corporation of India Ltd (SECI), NTPC Vidyut Vyapar Nigam Ltd (NVVN) and NTPC. Three solar assets have PPA with power distribution companies of Telangana who have historically had delayed collections. However, since fiscal 2023, receivables for the same have improved and collections are now less than 80 days days of raising invoices. Further, post-refinancing, the 12 solar SPVs will be funded by a single lender under cash pooling structure.

 

Post-acquisition, the credit risk profile including the debt service coverage ratio (DSCR) is expected to be healthy, in line with the rating category.

 

The ratings continue to reflect the stable revenue profile of Anzen InvIT, with the underlying transmission special purpose vehicles (SPVs) under the point of connection (PoC) mechanism and Solzen Urja Pvt Ltd (SUPL) having long-term offtake agreement (remaining life of approximately 21 years and fixed tariff) with the Solar Energy Corporation of India Ltd (SECI) as its counterparty.

 

The transmission SPVs have a healthy track record of maintaining line availability. Darbhanga Motihari Transmission Co Ltd (DMTCL) had line availability of 99.50% and NRSS XXXI (B) Transmission Ltd (NRSS) had 99.94% from Apr-Nov 2025 (YTD fiscal 2026); line availability was 99.79% and 99.86%, respectively, in fiscal 2025, at higher-than-normative levels over the past seven fiscals. Line availability in DMTCL was impacted for a short period in September 2025 on account of a transformer issue which has now been resolved. Furthermore, a substantial part of the capex incurred as well as revenue loss of substation (as per the insurance policy) are covered under insurance. SUPL also reported healthy plant load factor (PLF; AC) of 27.16% in fiscal 2025 and 28.00% in fiscal 2024. The PLF was marginally lower in fiscal 2025 on account of lower irradiation and a flashover incident. Furthermore, in the current fiscal, PLF was lower on account of breakdown of certain invertors. The impacted invertors have been restored and the loss of revenue on account of this issue is expected to be substantially mitigated through insurance cover and warranties. Overall healthy line availability and solar revenue will ensure steady cash flow over the debt tenure for Anzen InvIT with healthy debt service coverage ratio (DSCR) and adequate debt service reserve account (DSRA), resulting in strong financial risk profile.

 

With assets under management (AUM) of Rs 40.3 billion as on December 31, 2025, the net debt to AUM ratio as on September 30, 2025 is ~43%, well within the 70% stipulated by the Securities and Exchange Board of India (SEBI). Post-acquisition the net debt/ AUM is expected to remain at 53-54%.

 

Anzen InvIT plans to add renewable and transmission assets to the InvIT in the near- to medium term. Given transmission and renewables sectors have different risk profiles, Crisil Ratings will continue to closely monitor further diversification and its impact on the credit profile of the InvIT.

 

The strengths are partially offset by exposure to operations and maintenance (O&M) risk for the underlying transmission and solar assets.

Analytical Approach

Crisil Ratings has combined the business and financial risk profiles of Anzen InvIT and its SPVs, namely, DMTCL, NRSS and Solzen as the former has direct control over the SPVs and will support them during exigencies. Furthermore, the SPVs will have to mandatorily dispense 90% of their net distributable cash flow (after meeting their debt obligation) to the InvIT, leading to highly fungible cash flow.

 

For the proposed assets to be acquired, Crisil Ratings will factor in the surplus cash flow from the assets post servicing of respective debt obligations in proportion of Anzen’s holdings, given lenders in the SPVs will  have first right on the cashflows.

 

Please refer Annexure - List of Entities Consolidated, which captures the list of entities considered and their analytical treatment of consolidation.

Key Rating Drivers - Strengths

Stable revenue of underlying operational assets

The two underlying SPVs have a track record of above-normative transmission line availability of around seven years. Their TSAs ensure payment of stipulated tariff subject to achievement of normative line availability of 98%.

 
The revenue of a transmission SPV is completely delinked from the power demand-supply situation and volatility in electricity prices. Moreover, factors affecting line availability—such as unchecked vegetation growth, lightning or high ambient temperature causing wear and tear of insulators and flashovers—are routine. These events do not entail significant cost and can be easily rectified, thus minimising outage time. Any outage on account of extreme weather conditions, cyclones or excessive lightning is usually classified as an Act of God and is covered under the force majeure clause of the TSA. Hence, such an outage has no impact on the line availability.

 

The solar portfolio contributes 40-45% of the revenue which will remain dependent on radiation levels. Post acquisition of proposed solar assets the contribution of solar assets is expected to increase to 70-75%. The generation remains susceptible to variability in climatic conditions and risks pertaining to equipment. However, the project is backed by long-term PPA and healthy operational performance which will likely support the revenue profile. Further, Anzen has ROFO for acquisition of Kudgi Transmission Ltd which will bring down the contribution of solar assets to the overall revenues of Anzen.

Cash flow stability under the PoC pool mechanism and strong counterparty

The SPVs are interstate transmission system (ISTS) licensees and come under the PoC pool mechanism, wherein the central transmission utility (CTU) collects monthly transmission charges from all designated ISTS customers on behalf of the licensees. All ISTS licensees are then paid their share of the transmission charges from the centrally collected pool. This method mitigates counterparty risk as the risk of default or delay in payment from a customer is proportionately distributed among all ISTS licensees. Though most customers (power distribution companies) are weak counterparties, the CTU has maintained strong collection efficiency. The SPVs will continue to benefit from the strong collection efficiency of the CTU and diversification of the counterparty risk under the PoC pool mechanism.

 

SUPL has been operational for around four years and has a track record of healthy collection efficiency. On average, bill payments are received within 15 days. Further, solar assets to be acquired have more than 80% of the capacity tied with strong counterparties like Solar Energy Corporation of India Ltd (SECI), NTPC Vidyut Vyapar Nigam Ltd (NVVN) and NTPC. Three solar assets have PPA with power distribution companies of Telangana who have historically had delayed payments. However, since fiscal 2023, receivables for the same have improved and payments are now received in less than 80 days days of raising invoices.

 

Expectation of a strong financial risk profile

The Trust has stable cash flow aided by the long-term TSAs/PPAs of its underlying SPVs and the sound collection efficiency. The cash flow shall support healthy DSCR over the medium term. Furthermore, DSRA equivalent to three months of principal and interest obligations (excluding bullet repayments) is maintained for the debt raised at Anzen and its SPVs.

 

The Trust has a ROFO for acquisition of Kudgi Transmisison Ltd (KTL, Crisil AAA/Stable). Future acquisitions, including KTL by Anzen, and their impact on the financial risk profile of the InvIT, remain monitorable.

Key Rating Drivers - Weaknesses

Exposure to O&M risks for SPVs

Maintenance of high line availability is critical to ensure stability of revenue in the power transmission sector. Although the O&M expense forms a small portion of revenue, improper line maintenance may lead to revenue loss and weaken the loan repayment capability of the SPVs. Similarly, timely O&M for solar assets is critical for healthy generation. However, these risks are mitigated by low technical complexity and O&M being a routine activity.

 

Exposure to refinancing risk

Anzen InvIT has bullets because a part of the date is raised through NCDs. However, the long life of underlying assets is expected to support refinancing at favourable terms, as indicated by the strong project life cycle ratio. Anzen is expected to prudently refinance the maturing debt as done in the past and maintain its healthy DSCR over the medium term.

Liquidity Superior

Stable revenue and strong cash accrual will ensure healthy DSCR over the debt tenure and comfortably cover the debt obligation over the medium term. Moreover, the long life of underlying assets, exceeding the debt tenure, should help in refinancing the bullet repayment at favourable terms. Maintenance of a three-month DSRA supports liquidity

Outlook Stable

Crisil Ratings believes Anzen InvIT will generate stable cash flow, backed by the ability of its transmission assets to maintain the stipulated line availability and implementation of the PoC pool mechanism for billing and collection. Additionally, SUPL’s counterparty is SECI which makes payment within 15 days, mitigating counterparty risk.

Rating sensitivity factors

Downward Factors

• Decline in line availability to below 98% on sustained basis or material decline in PLFs on sustained basis, weakening the cash flow
• Delay in collection under the PoC mechanism

 

Key monitorable

Given the nature of the InvIT platform, the trust will acquire new assets over the medium term. The quality of assets, funding of acquisitions and their impact on the credit risk profile of the trust will be monitorable.

Any other information: Not Applicable