Detailed Rationale

Crisil Ratings has assigned its ‘Crisil AAA/Stable' rating to the Rs 775 crore non-convertible debentures (NCDs) of Anzen India Energy Yield Plus Trust (Anzen InvIT) and has reaffirmed its ‘Crisil AAA/Stable’ rating on the remaining NCDs and long term bank facility.

 

The debt raised will be used to refinance existing NCD and part prepayment of Term Loan aggregate to approximately Rs.740 Cr, with the balance to be allocated for capex and transaction-related expenses.

 

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 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 99.79% and NRSS XXXI (B) Transmission Ltd (NRSS) had 99.86% in fiscal 2025; line availability was 99.96% and 99.83%, respectively, in fiscal 2024, 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. The line availability is expected to remain above 99% over the remaining concession period of ~27 years of the transmission service agreements (TSAs). 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. Around 50% of the impacted invertors have been restored while the remaining are expected to be restored by December 2025. The loss of revenue on account of this issue is 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 39.7 billion as on June 30, 2025, the net debt to AUM ratio at present is ~42.8%, well within the 70% stipulated by the Securities and Exchange Board of India (SEBI).

 

Crisil Ratings has also taken note of the reduction in unitholding of SEPL Energy Pvt Ltd (Sponsor of the Trust) and Edelweiss Infrastructure Yield Plus (EIYP; an associate to sponsor of Anzen) to 6.22% and 15.04% respectively. However, EAAA Real Assets Managers Limited (ERAML), shall continue as the investment manager of Anzen trust. 

 

The trust had previously executed a right of first offer (ROFO) agreement with Infrastructure Yield Plus II on December 19, 2024, with respect to 100% holding in Kudgi Transmission Ltd (rated ‘Crisil AAA/Stable’), the SPV owning a transmission line of ~980 ckt km in Karnataka.

 

The InvIT also has a ROFO for the stake of Edelweiss Infrastructure Yield Plus Fund (EIYP)/SEPL Energy Pvt Ltd (SEPL) in 12 operational solar assets. The solar assets are spread across India and have a combined capacity of around 815.7 megawatt (MW; DC). The final details of the acquisition and its impact on the credit risk profile of Anzen InvIT will be monitorable.

 

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 assets and impact of the proposed acquisition of the solar assets.

Analytical Approach

Crisil Ratings has combined the business and financial risk profiles of Anzen InvIT and its SPVs 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.

 

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. 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.

 

Cash flow stability under the PoC pool mechanism and SECI as 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.

 

The solar asset has been operational for around three years and has a track record of healthy collection efficiency. On average, bill payments are received within 10 days.

 

Expectation of a strong financial risk profile

The trust has stable cash flow aided by the long-term TSAs of its underlying SPVs and the sound collection efficiency under the PoC mechanism. The listing proceeds were utilised to repay the external debt in the SPVs, and the trust raised external debt to refinance the debt in the SPVs and accrues interest on the same.

 

The trust has debt maturities of around Rs.450 Crs in FY26, expected to be refinanced by November 2025, and Rs.1,000 Crs in fiscal 2028 However, the long life of underlying assets is expected to support refinancing at favourable terms, as indicated by the strong project life cycle ratio. Acquisitions, including the ROFO assets by Anzen InvIT, and their impact on the financial risk profile of the InvIT, will be 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.

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.

About the Sponsor

SEPL Energy Pvt Ltd is a wholly owned portfolio company of EIYP, whose investment manager is EAAA India Alternatives Ltd. EIYP is a SEBI-registered Category I alternative investment fund (AIF), which invests in sectors such as power transmission, renewables, roads and highways and other infrastructure.

Key Financial Indicators

Particulars	Unit	2025	2024	2023*
Revenue	Rs crore	257	243	94
Profit after tax (PAT)	Rs crore	-16	-30	-32
PAT margin	%	-6.06	-12.2	-34.1
Adjusted debt/adjusted networth	Times	1.22	0.56	0.49
Interest coverage	Times	2.96	3.5	1.9

*Anzen commenced operations in November 2022

Any other information: Not Applicable