Juniper Green Energy unit gets CARE A+ rating for ₹472 crore loan

The rating action in numbers

What the rating covers

CARE Ratings has assigned its A+; Stable rating to the long-term bank facilities of Juniper Green Spark Ten Private Limited, a subsidiary that operates a 100 MW solar wind hybrid power project in Maharashtra, made up of 75 MW AC solar and 25 MW wind capacity. The rated amount is ₹472.16 crore.

The project sells power to Maharashtra State Electricity Distribution Company Limited (MSEDCL) under a 25-year power purchase agreement at a fixed tariff of ₹3.60 per unit for the entire capacity. CARE Ratings says the outlook is Stable, factoring in that long-term PPA, generation expected in line with P90 PLF estimates and timely payment from the off-taker.

Support and penalty terms in the rating

CARE Ratings says the rating factors in a limited period sponsor undertaking from Juniper Green Energy Limited for shortfall in debt servicing and debt service reserve account funding until two years from the commercial operations date. The agency also says the project was commissioned early, with the full solar and wind capacity expected by September 2026, ahead of the scheduled COD of November 2026.

CARE Ratings says the company faces a penalty of 1.5 times the agreed tariff on shortfall units if generation falls below the minimum set in the PPA. It expects total debt to EBITDA to remain above 5.5x over the medium term, and expects average DSCR of 1.5x in its base case. It names a negative factor as a sustained DSCR below 1.20.

What the rating means for Juniper Green Energy's shareholders

The filing concerns a rating on a wholly owned subsidiary's bank facilities. CARE Ratings says that management has indicated a project cost reduction of at least ₹50 crore and that early power sales have added about ₹30 crore of revenue until September 2026. The filing does not say what effect the rating has on the parent's results or capital, the actual generation achieved to date, or whether the sponsor undertaking has been called on. The filing does not give the lenders or the split of the facility.

Reference: Original filing (PDF)