Sterlite Power Raises Funds from Brazilian Market via Debentures

This is an important milestone for the company as its first infrastructure debentures in the Brazilian capital markets.

Global power transmission assets developer Sterlite Power has raised funds through its newly issued infrastructure debentures for the Arcoverde Project.

Arcoverde Project was the company’s first project in Brazil which was successfully commissioned 28 months ahead of the schedule.

The infrastructure debentures of the Arcoverde project were rated by Fitch Ratings as ‘AAA’, the best possible risk rating.

This is an important milestone for the company as its first infrastructure debentures in the Brazilian capital markets.

Commenting on the development, Sterlite Power – Brazil, CEO, Rui Chammas said, “We are pleased with this AAA rating, which attests the financial quality of our projects.”

Moreover, the R$ 52 million single-issue transaction has a 23-year term.

The company said in a statement that, this ‘AAA’ rating of Arcoverde Project Debentures issue reflects the operational stage of the project, as well as the legal and regulatory framework of the Brazilian energy sector, associated with the nature of the power transmission segment.

Through the issuance, the project’s long-term financing structure will be composed of both infrastructure debentures and BNB’s long-term financing. This way, the project guarantees optimized financing conditions, it added.

This project was commissioned in May 2019, expanding power transmission services to the Pernambuco region with construction of 129 km of power transmission lines, the installation of a new substation (Arcoverde II) and the expansion of two other current substations (Garanhuns II and Caetés II).

Meanwhile, the company is a power transmission infrastructure developer with projects of over 13,315 circuit kms and 23,885 MVA in India and Brazil. It has a portfolio of power conductors, EHV cables and OPGW. The company also offers solutions for upgrading, uprating and strengthening existing networks. It has set new benchmarks in the industry by using cutting-edge technologies and innovative financing.