ICRA

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Waste-to-energy producer SAEL has raised Rs 1,325 crore by issuing AA rated bonds to top notch institutional investors such as Tata Cleantech Capital, Kotak Infra Debt, Aseem Infrastructure Finance and India Infradebt, according to a company statement.
The bonds have a 10 year tenure and will be used for long term financing of the company’s ambitious plan to develop an IPO-ready renewable energy company.

India Infradebt has lended funds to SAEL

The Reserve Bank of India (RBI) has permitted non-banking finance companies operating as Infrastructure Debt Fund (IDF-NBFCs) to raise money through external commercial borrowings (ECBs). These borrowings will be subject to a minimum tenor of five years, and IDF-NBFCs are prohibited from sourcing the ECB loans from the foreign branches of Indian banks, as stated by the RBI in communication to the companies.

RBI allows IDF-NBFCs to raise money via external commercial borrowings

Regulations mitigate construction risk by mandating loans only to operational projects. However, high concentration risk persists (top 10 borrowers: 27%). Despite this, asset quality remains strong with gross stage 3 assets at 0.5% and nil net stage 3.


The issuer has made timely interest payments.

Mr. Suvek Nambiar, MD and CEO

Infradebt's portfolio grew 17% (annualized) to Rs. 24,048 crore, driven by Renewable Energy (72%). Lending only to operational projects means nil construction risk. The fund's experienced management and low LGD risk in core sectors support an expected 15-20% growth rate.


The ratings are strengthened by Infradebt's experienced senior management and proven track record of superior risk management and prudent policies, which support its plan for scaled growth and diversification.


Infradebt, an NBFC-IDF, must use bonds and ECBs with a minimum five-year maturity. Because it lends only to operational projects, immediate loan repayments support its favorable ALM profile.


Infradebt is well-capitalized with a Rs. 3,435 crore net worth and a 20.0% CRAR (vs. 15% required), supported by its strong shareholders; its 6.6x gearing is expected to remain stable, mitigating portfolio concentration risk.


Infradebt's NIM declined slightly to 2.2% in 9M FY2025 due to higher gearing, while low operating expenses kept RoA stable at 1.9% (PAT of Rs. 347 crore). Its profitability relies significantly on its tax-exempt IDF status, making any change in this regulation a critical monitorable risk.


Rating agency	Rating	Needle position
ICRA	AAA Stable	near High Safety
CRISIL	AAA Stable	near High Safety

Security Name: 6.75% India Infradebt Limited 14 Jun 2027

ISIN: INE537P07638

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