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Thursday, June 8, 2023

ICRA reaffirms WindForce at (SL)AA- The Morning

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ICRA Sri Lanka reaffirmed the issuer rating of (SL)AA-, providing a stable outlook for WindForce PLC.

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, characterised with long-term monetary development has also contributed to this achievement. 

 It is recognised in the energy space 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 independent power producer of renewable energy in Sri Lanka. 

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.

With a 220-megawatt (MW) portfolio, WindForce has achieved expansion in Pakistan, Uganda, and Ukraine, strengthening their stance and presence in the global market. The company listed on the Colombo Stock Exchange (CSE) in April of 2021 and since has issued a total dividend payout of Rs. 1.76 billion for financial year (FY) 21/22.

WindForce is currently nearing the completion of their new 10 MW solar power plant in Vavunathivu and expects to commission the plant in mid-July 2022. This will contribute over 19 gigawatt hours (GWh) of power annually to Sri Lanka’s struggling national grid and is equivalent to approximately 4.9 million litres of oil saved. The company’s 15 MW (10+5) wind power plant, Hiruras (Pvt.) Ltd., commenced construction in February 2022 and is projected to be commissioned in December 2022.

The company’s revenue visibility over the years seems promising due to their Power Purchase  Agreements (PPA) with the Ceylon Electricity Board (CEB), further sealing their financial stability. 


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