[SL]AA- Issuer Rating for WindForce PLC Reaffirmed by ICRA for the second time.
WindForce is recognized in the energy space as experts in the field of generating power through renewable sources. The company focuses on the construction, operation and management of wind, solar and hydro power plants. With 28 plants currently in operation and two more under construction, the firm holds the position as the largest independent power producer of renewable energy in Sri Lanka.
With a 220MW portfolio, WindForce has achieved successful expansion in Pakistan, Uganda, and Ukraine, strengthening their stance and presence in the global market. The company listed on the Colombo Stock Exchange in April of 2021 and since has issued a total dividend payout of LKR 1.76 Billion for the FY 21/22.
WindForce is currently nearing the completion of their new 10MW solar power plant in Vavunathivu and expect to commission the plant in mid July 2022. This will contribute over 19GWh of power annually to Sri Lanka’s struggling national grid and is equivalent to approximately 4.9 million liters of oil saved. The company’s 15MW (10+5) wind power plant, Hiruras (Pvt) Ltd, commenced construction in February 2022 and is projected to be commissioned in December 2022.
Diversification and cemented financial stability has led ICRA Sri Lanka to reaffirm the issuer rating of [SL]AA-, providing a stable outlook for WindForce. This rating is a general opinion on the creditworthiness of the firm, indicating high credit quality and low risk.
This rating is achieved as a result of the company’s profitability and steady cash inflows through liquid assets and strategic financial management. A healthy financial profile, characterized with long term monetary development has also contributed to this achievement.
The company’s revenue visibility over the years seems promising due to their Power Purchase Agreements (PPA) with the Ceylon Electricity Board, further sealing their financial stability.
ICRA’s reaffirmation for this rating is an indication of profitability and secure financial stability for WindForce, incorporating high quality credit into their renowned brand reputation.
