Andhra Pradesh-Transco to tap the capital markets soon
Chandrababu Naidu stated that the financial restructuring plan encompasses both short and long-term strategies drawn up to strengthen the AP-Transco’s financial position and ensure its financial sustainability
Andhra Pradesh-Transco plans to issue an Initial Public Offering (IPO) soon, as part of its financial restructuring strategy, to bolster the company's financial standing and ensure long-term sustainability. The Transmission Corporation of Andhra Pradesh Limited (AP-Transco) is required by the Ministry of Power (MoP) to undertake an IPO in each State, following the FRBM framework guidelines.
Chief Minister N. Chandrababu Naidu approved the plan during a high-level review meeting in August 2022. The short-term strategy focuses on optimizing the AP-Transco's existing loan portfolio to decrease interest costs on outstanding borrowings within a targeted range of 8.00% to 8.60%. The long-term plan aims to restructure borrowings to enhance the creditworthiness of the power utility, with the ultimate goal of achieving a AAA+ rating.
Key Result Areas (KRAs) have been identified for timely completion of the IPO roadmap, including regularization of land properties, improvement of financial parameters, exploration of project finance through various sources, leasing of dark fibres for non-tariff income, and implementation of ISO 55001:2024 Asset Management Certificate.
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