Anzen InvIT AAA reaffirmed as loans rise to ₹2,510cr

CRISIL reaffirms AAA/Stable rating

CRISIL has reaffirmed the ‘AAA/Stable’ rating for Anzen India Energy Yield Plus Trust’s long-term bank facilities and its non-convertible debentures. The reaffirmation comes at a time when the InvIT is in the middle of a large balance sheet and portfolio expansion. In parallel with the rating action, the trust is pursuing the acquisition of Kudgi Transmission Limited (KTL), which it has positioned as a key growth initiative. Anzen operates as an Infrastructure Investment Trust (InvIT) that acquires and manages contracted, revenue-generating energy and infrastructure assets in India. The trust’s stated strategy focuses on operational assets with long-term contracts that can support distributions to unitholders.

Rated bank facilities expanded sharply

Alongside the rating reaffirmation, the trust’s total rated bank loan facilities have been enhanced materially. The rated facilities increased from ₹974.66 crore to ₹2,509.66 crore. The higher sanctioned level reflects the scale of transactions under consideration and the financing needs that can arise alongside acquisitions and refinancing actions. As of May 2026, total rated bank loan facilities stand at ₹2,509.66 crore.

Kudgi Transmission acquisition moves ahead

Anzen is proceeding with its planned acquisition of Kudgi Transmission Ltd, also referenced as ROFO 2 in filings. The acquisition is intended to increase the trust’s asset base and strengthen its revenue profile through an additional operational transmission asset. The enterprise value cited for KTL is around ₹2,000 crore in the postal ballot materials, while a valuation report referenced an enterprise value of ₹2,069.1 crore (₹20,691 million). The acquisition is to be executed in one or more tranches, and completion is subject to unitholder and other regulatory approvals.

What the Kudgi asset includes

Kudgi Transmission Limited operates 400/765 kV double-circuit power transmission lines in Karnataka. Disclosures describe the project as having about 980 circuit kilometres (also presented as about 490 km route length / 980 circuit km). The asset has a residual life of 25 years, and the Transmission Service Agreement extends up to September 2051. KTL began commercial operations in September 2016.

Funding structure: unit swap, preferential issuance, and debt

Unitholders approved a preferential issuance of units aggregating up to ₹1,100 crore. The structure described includes issuance of up to 8,80,00,000 units at ₹125 per unit, resulting in a total consideration of ₹1,100 crore, primarily as a non-cash swap linked to the acquisition. The KTL transaction is also described as being funded through a mix of unit swaps and debt. The postal ballot materials also list external debt of ₹1,200 crore associated with KTL.

Unitholders approve four key resolutions

Anzen’s unitholders approved four resolutions via a postal ballot process conducted through remote e-voting. The approved items included: (1) sponsor change, (2) acquisition of 100% equity and other securities of KTL in one or more tranches, (3) preferential issuance of units for an aggregate consideration other than cash of up to ₹1,100 crore, and (4) unitholding approval for Infrastructure Yield Plus II, Infrastructure Yield Plus IIA, and India Infrastructure Yield Plus II and their associates or affiliates. For the acquisition resolution, disclosures stated that both public institutional and public non-institutional votes were entirely in favour. The acquisition resolution required a simple majority under Regulation 22(7) of the InvIT Regulations.

Sponsor change: Epic Green Urja replaces SEPL Energy

A separate resolution covered the sponsor transition, under which SEPL Energy Private Limited exits as sponsor and Epic Green Urja Private Limited (EGUPL) is inducted as the new sponsor of Anzen India Energy Yield Plus Trust. Disclosures also noted that SEPL Energy had progressively reduced its stake since late 2025, and completed its full divestment by April 1, 2026. The sponsor change is presented as part of a broader restructuring that accompanies the planned acquisition and the preferential unit issuance.

UBO clarification and refinancing plan after acquisition

After the postal ballot approvals, the Investment Manager issued a clarification letter dated May 12, 2026. The letter disclosed Ultimate Beneficial Owner (UBO) details for the three proposed allottee schemes for the preferential issue, namely Infrastructure Yield Plus II (IYP II), Infrastructure Yield Plus IIA (IYP IIA), and India Infrastructure Yield Plus II (IIYP II). The Investment Manager stated that since no person holds 10% or more in these schemes, no natural persons were disclosed as UBOs from a beneficiary holdings perspective. Instead, it disclosed the key investment team members who exercise decision-making for investment and divestment for the allottee schemes, naming four individuals. The Investment Manager also confirmed that post-acquisition of KTL, there would be refinancing of its existing debt.

Portfolio scale and earlier acquisitions

Anzen has been expanding its portfolio in recent quarters. It earlier acquired Sekura Energy assets for an enterprise valuation of about ₹2,418 crore. Separately, disclosures stated that the trust tripled its AUM to ₹6,552 crore following a ₹696.44 crore preferential issue and acquisition of 12 renewable solar assets. As of December 31, 2025, assets under management were stated at ₹6,552 crore (₹65.52 billion). The trust’s broader portfolio has been described as spanning transmission and renewable solar assets.

Key numbers at a glance

Market and investor relevance

For unitholders, the rating reaffirmation and the increase in rated facilities provide a clearer view of the trust’s funding headroom as it pursues acquisitions and potential refinancing. The KTL acquisition, if completed as planned, adds an operational transmission asset with a long-dated contract period extending to 2051. The preferential issuance and unit swap structure also shows how the trust is using equity-like instruments to fund growth transactions, alongside debt. Disclosures also highlighted ongoing monitoring points, including completion of the KTL acquisition and its operational status.

Timeline of key events disclosed

Conclusion

Anzen India Energy Yield Plus Trust is combining a CRISIL AAA/Stable reaffirmation with a significant expansion in rated bank facilities to ₹2,509.66 crore, while advancing the Kudgi Transmission acquisition and a ₹1,100 crore preferential unit issuance. The sponsor transition to Epic Green Urja and the post-acquisition refinancing plan add further structure to the transaction roadmap. The next milestones remain the completion of the KTL acquisition in line with approvals and the associated financing and refinancing steps already disclosed.