Sterlite Grid 32 announces successful closure of ₹2450 cr listed NCDs for MUML

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

Sterlite Grid 32 Ltd has successfully refinanced its Mumbai Urja Transmission Limited (‘MUML’) Project by way of listed Non-Convertible Debentures (‘NCD’). The infrastructure business of Sterlite Power Transmission Limited was demerged into Sterlite Grid 5 Limited (‘SGL5’) effective October 08, 2024. SGL5 recently entered in 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).

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

Speaking on the development, Pratik Agarwal, Director, Sterlite Grid 32 Ltd, said, “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”.

He further added, “This transaction has helped us diversify from its traditional sources of debt financing to debt capital market financing. The JV now has access to stronger alternative source of funds.”

The JV Platform had won MUML Project in June 2020, through Tariff Based Competitive Bidding (TBCB) 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 strengthening Scheme-XIX (WRSS-XIX) and northeastern region strengthening Scheme-IX (NERSS-IX) spanning across Maharashtra, Gujarat, Assam, and Arunachal Pradesh. MUML Project is critical for strengthening the transmission system in the Mumbai Metropolitan Region, with the potential to carry more than 2000 MW of additional power to Mumbai and Navi Mumbai.

The closure of INR 2450 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 the State of Rajasthan.