Clean Renewable Power (Mauritius) issuer summary: HFE RG1 Renewable Energy Restricted Group and 2027 Refinancing Risk

Date prepared: 2026-05-12
Issuer: Clean Renewable Power (Mauritius) Pte. Ltd.
Substantive credit exposure: Indian renewable energy restricted group under Hero Future Energies (HFE RG1 / Restricted Group)
Bond covered: USD 363mn 4.25% Senior Secured Notes due 2027
Listing and key materials: SGX-listed Offering Memorandum; SGX / HFE Bondholder Information Restricted Group disclosures; related public materials from Fitch, Moody's and CRISIL

1. Business Snapshot and Recent Developments

Clean Renewable Power (Mauritius) Pte. Ltd. is not an ordinary operating company, but a foreign-currency financing vehicle for Indian renewable energy assets under Hero Future Energies. The issuer is a Mauritius-incorporated SPV and, as a wholly owned subsidiary of Hero Future Energies Asia Pte. Ltd., issued USD 363mn of 4.25% Senior Secured Notes due 25 March 2027 in March 2021. The SGX listing page is a primary source confirming the Offering Memorandum dated 18 March 2021 and the issue amount, coupon and maturity of the notes.

For credit analysis, the central question is not CRP's standalone balance sheet, but whether the Restricted Group, consisting of eight renewable energy SPVs in India, can generate cash on a stable basis and whether that cash can flow through INR-denominated ECB bonds in India, hedging arrangements, the Mauritius SPV and ultimately to USD bond investors. The Offering Memorandum sets out a structure under which CRP uses the proceeds from the USD notes to subscribe for INR-denominated external commercial borrowing bonds (Onshore ECB Bonds) issued by the Indian Restricted Group entities. In other words, investors buy USD notes, but the repayment source is built from rupee-denominated revenue from Indian wind and solar projects, principal and interest payments on the Onshore ECBs, hedging and account-control arrangements.

At issuance, the Restricted Group consisted of 231.5MW of wind and 273.0MW of grid-connected solar, for a total of 504.5MW. In HFE's February 2026 investor presentation, the Restricted Group is shown as 531.52MWp of operating assets, comprising 300.02MWp of solar, 231.50MW of wind, eight operating projects and a portfolio spanning three states. Because the increase may reflect differences in presentation units or an updated capacity classification, the safer approach is to treat the portfolio as 504.5MW on the OM basis at issuance and 531.52MWp on the basis of the latest company materials.

Two recent points matter most. First, in the Restricted Group's FY2025 financials, generation declined year on year and revenue and profit also fell. In the operating review of the FY2025 Special Purpose Combined Financial Statements posted on SGX on 26 July 2025, revenue from operations for the year ended March 2025 was INR 4,701.98mn, down from INR 4,986.50mn in the prior year. Generation was also 913.53GWh, down 4.48% from 956.40GWh in the prior year. The main causes were weaker wind and solar irradiation and lower carbon credit revenue. For a project-finance-style bond, one year of lower generation should not by itself immediately change the credit view, but it cannot be ignored when assessing the scope for cash accumulation before the 2027 maturity.

Second, the final maturity in 2027 is approaching. From issuance, Fitch assessed the notes as a partly amortising structure that would require refinancing of a substantial portion of principal at maturity. HFE's February 2026 investor presentation states that about USD 83.5mn of principal had been repaid through scheduled amortisation and mandatory cash sweep from issuance through September 2025. This is about 23.0% of the USD 363mn issue amount. Even when combined with the scheduled aggregate repayment of 29.75% by September 2026, a large balance would still need to be refinanced or repaid at the March 2027 maturity.

Therefore, the current credit analysis cannot stop at whether the operating renewable assets have stable cash flow. It is necessary to assess, simultaneously, whether sufficient cash has accumulated inside the Restricted Group by the 2027 maturity, how effective the parent guarantee and sponsor access are, whether the Indian domestic refinancing market is available, whether hedging and remittance mechanics work, and whether the notes can be refinanced while remaining around Fitch/Moody's BB-/Ba2 level.

2. Entity Scope and Cash Flow Map

The most important mistake to avoid in this credit is treating the CRP issuer SPV, the Indian Restricted Group, HFEPL, the HFE Global group and the Hero Group as a single company. Domestic ratings, the group portfolio shown on the company website, SGX-listed Restricted Group financials and USD note ratings all relate to the HFE group, but their credit meanings differ.

Legally, CRP's credit is that of USD notes issued by a Mauritius issuer. Economically, it is a structure for delivering rupee-denominated revenue from Indian renewable energy assets to USD note investors. HFE's investor presentation describes the USD note collateral as including a pledge over the issuer shares, a floating charge over issuer assets excluding the Onshore ECB itself, and rights to receivables and recoveries from the Onshore ECB. On the INR ECB side, the presentation describes a 51% pledge over the shares of each Restricted Subsidiary, first-ranking security over certain immovable and movable assets, and second-ranking security over current assets.

This structure has greater ability to ring-fence cash flow than ordinary unsecured bonds of listed Indian IPPs. However, USD noteholders do not directly own the Indian project assets. Recoveries reach them through Onshore ECB payments, remittances out of India, hedging, security enforcement, tax, RBI/ECB regulations and the practical operation of onshore security agents such as Axis Trustee. Therefore, the "senior secured" label indicates meaningful protection, but it does not mean there is a direct and immediate recovery right over the Indian assets.

3. Industry Position and Franchise Strength

Within the Indian renewable energy market, HFE RG1 is a medium-sized operating portfolio with multiple states, multiple technologies and multiple offtakers, rather than a single large solar project or a single-state wind project. The 504.5MW scale at issuance is smaller than large listed renewable companies such as Greenko or Adani Green, but it provides a degree of diversification for a portfolio backing a project bond. On the latest company-materials basis of 531.52MWp, solar accounts for about 56.4% and wind for about 43.6%. The fact that wind and solar seasonality do not move fully in the same direction is a credit support.

The issuance OM states that the power from the Indian Restricted Group is sold under medium- to long-term PPAs to state distribution companies, SECI, industrial and commercial customers and others. Fitch's issuance materials stated that 46% of total capacity was contracted to SECI. HFE's February 2026 investor presentation shows 47% as contracted to SECI. SECI is an Indian government-linked power procurement entity and is generally viewed as having a better payment history and credit quality than state distribution companies. However, even a SECI PPA does not turn the CRP notes into a sovereign-guaranteed exposure. Back-to-back arrangements from SECI to end-DISCOMs, VGF, tax and regulatory changes, and transmission constraints remain relevant.

The Restricted Group's offtakers also include state-owned power purchasers such as MPPMCL, MSEDCL and HESCOM. These carry payment-delay risk that is common in Indian renewable projects. HFE's February 2026 investor materials indicate that receivables collection for the Restricted Group has improved, with Debtors declining from USD 20.8mn in March 2023 and USD 9.5mn in March 2024 to USD 2.87mn in March 2025. For CWP Ratlam, there is an instalment recovery scheme for legacy receivables; as of March 2025, 32 out of 40 instalments had been received, with USD 2.4mn remaining. This is materially important for credit: payment delays remain, but legacy receivables are being converted into cash.

The broader HFE group franchise is also a supporting factor. HFE's official website describes the company as a Hero Group-affiliated global renewable energy company with 7.2GWp of renewable energy and 2.3GWh of BESS assets across India, Ukraine, Vietnam and the UK. It also lists IFC and KKR as key investors. An SGX announcement dated 23 September 2022 also disclosed that KKR and Hero Group had entered into an agreement to invest USD 450mn in HFE. These are supporting factors for sponsor strength and capital-market access.

That said, expansion of the overall HFE group is not always positive for the CRP notes. The CRP notes are structured around a static asset pool within the Restricted Group, while the funding needs of HFE group's new hybrid, battery storage and hydrogen projects could pressure capital allocation at the parent and group level. CRISIL also points to execution risk in the HFE Global group's 4.2GW of hybrid projects under construction. Therefore, HFE's growth capacity supports refinancing access, but parent-level funding needs and execution risk must also be monitored.

4. Segment Assessment

The Restricted Group's assets should be analysed separately as solar and wind. Solar consists of CSP Gulbarga, Rajkot (Gujarat) Solar Energy and CSP Dhar, with a combined 300.02MWp in the latest company materials. Wind consists of CWP Ratlam, Bhilwara Green Energy Limited, CWP Satara, CWP Piploda and CWP Bableshwar, with a combined 231.50MW. The project names are somewhat complicated, but from a credit perspective it is easier to read the portfolio as a combination of: 1) large solar contracted to SECI, 2) wind contracted to state distribution companies, 3) state-level payment and transmission risks in Maharashtra / Madhya Pradesh / Karnataka, and 4) partial exposure to C&I tariffs or shorter remaining PPA terms.

The portfolio's strengths are that construction risk has effectively disappeared, the generation technologies are mature, nearly half of capacity is contracted to SECI, and the portfolio combines wind and solar. HFE's February 2026 materials state that 100% of the Restricted Group is operating and that 84.67% is contracted under long-term PPAs of more than 20 years. This makes cash flow more predictable than in ordinary merchant power or renewable projects still under construction.

The constraints are also clear. First, renewable energy assets have no fuel price risk, but they do have wind and solar resource risk. The FY2025 decline in generation is precisely an example of resource variability flowing through to cash flow. Second, PPAs with state distribution companies require management of payment delays and receivables collection. Third, some assets are approaching PPA expiry or tariff resets. The INR 206.10mn impairment recorded for Bhilwara Green Energy Limited in FY2025 reflected expected tariff decline after PPA expiry and shows that the phrase "long-term PPA" cannot be applied uniformly across all assets.

The latest company materials disclose revenue and EBITDA through H1 FY26. HFE's February 2026 materials show Restricted Group total income of INR 5,635mn in FY2023, INR 5,719mn in FY2024, INR 5,415mn in FY2025 and INR 3,023mn in H1 FY2026. EBITDA was INR 4,599mn in FY2023, INR 4,775mn in FY2024, INR 4,186mn in FY2025 and INR 2,497mn in H1 FY2026. H1 FY26 is a half-year figure and should not be simply annualised, but it indicates that, at least on a half-year basis, the assets continued to generate cash after the FY2025 decline.

5. Financial Profile and Analysis

For the Restricted Group's financials, the focus should be on cash-flow stability and debt service capacity rather than revenue growth. In FY2025, revenue from operations and generation declined, and profit after tax fell materially. At the same time, operating cash flow was positive, and the group made debt repayments and interest payments. It is insufficient to read this simply as "weak because profit is low" or "not a problem because operating cash flow is strong." For a project bond, what matters more than accounting profit is electricity sales revenue, collections, O&M, taxes, interest payments, scheduled amortisation, MCS and surplus after cash trap.

The FY2025 revenue decline is explained as the effect of weaker wind at the wind projects, weaker solar irradiation at the solar projects and lower carbon credit sales, rather than as a structural PPA termination. A 4.48% decline in generation is within the range that can occur in a renewable portfolio, but given that Fitch's downgrade sensitivities include low generation, payment-cycle lengthening and worse refinancing terms, it should not be dismissed as a minor one-year fluctuation. FY2025 EBITDA also declined to INR 4,186mn on the company-materials basis from INR 4,775mn in FY2024, indicating a step-down in cash generation.

Collections, by contrast, have improved. HFE's investor presentation states that the Restricted Group's Debtors declined from USD 20.8mn in March 2023 to USD 2.87mn in March 2025. This materially reduces, at least for now, the receivables-collection uncertainty that is often an issue in renewable projects selling to state distribution companies. The fact that operating cash flow was a large positive INR 4,396.61mn in FY2025 is also an important support that is not visible from accounting profit alone.

However, accounting operating cash flow is not the same as free cash flow available to bondholders. FY2025 financing cash flow was an outflow of INR 3,664.15mn, including INR 1,998.50mn of debt repayment and INR 1,665.65mn of interest payments. This shows that the assets are servicing debt, but also that much of the cash is structurally used for debt repayment as the 2027 maturity approaches. Future assessment needs to examine how much cash remains inside the Restricted Group after taxes, O&M, maintenance, scheduled amortisation, MCS, hedging and distribution restrictions.

The financial profile of the broader HFE group should be used only as supporting evidence. HFEPL's consolidated financials for the year ended March 2025 show non-current Onshore ECB Bonds of INR 19,854.24mn and current maturities of INR 1,763.95mn. The prior-year figures were INR 21,618.25mn and INR 1,627.92mn, respectively. HFEPL consolidated figures do not cover the same perimeter as the CRP notes, but they help confirm the balance and amortisation of the Onshore ECB. This balance should not be equated with the actual amount outstanding of the USD notes, because it includes Indian accounting presentation, discount and expense amortisation, FX effects and current/non-current classification.

6. Structural Considerations for Bondholders

The CRP note structure includes multiple protections to connect rupee-denominated cash flow from Indian renewable assets to the USD notes. HFE's investor presentation describes several structural strengths: limiting cash leakage from the Restricted Group, trapping 100% of surplus cash inside the Restricted Group during the bond tenor, repaying about 30% of USD note principal through scheduled amortisation and mandatory cash sweep, HFEPL providing a full-tenor unconditional and irrevocable guarantee for the INR ECB, and the Restricted Group being static.

These features are genuinely important for noteholders. If the Restricted Group were free to pay dividends or make group loans, cash accumulation ahead of the 2027 maturity could easily leak to the parent or growth projects. The CRP notes are designed so that distributions restrictions, cash trap and MCS steer surplus from operating assets towards debt repayment. Fitch also gave credit at issuance to cash retention inside the restricted group and distribution restrictions.

However, the structure also has weaknesses. First, collateral for the USD notes and collateral for the Onshore ECB are not the same. Collateral for the USD notes mainly consists of CRP shares, a floating charge over issuer assets, receivables and recoveries from the Onshore ECB, and rights over the initial Escrow Account. By contrast, collateral over the Indian assets is created as a security package for the INR ECB. USD noteholders reach the Indian assets through the Onshore ECB and related security mechanics; they do not directly hold security over all assets of each Indian power plant.

Second, hedge-counterparty priority must be considered in an enforcement scenario. The OM explains that Pari Passu Collateral also secures certain hedging obligations and that hedge counterparties are paid ahead of Noteholders in an enforcement of collateral. Hedging is necessary from a credit perspective to reduce currency risk, but hedge termination value under stress, allocation of collateral and counterparty priority cannot be ignored in recovery analysis.

Third, movement of funds from India to the Mauritius SPV involves ECB regulations, withholding tax, tax, FX and procedural risks. These may be manageable in normal times, but if payment delays, sharp FX moves, regulatory changes, tax disputes and problems with hedging contracts coincide, cash may be generated onshore but fail to reach offshore in time for USD note principal and interest payments. This is a cross-border securitisation / project-finance structural risk that is separate from the business risk of the Indian renewable assets themselves.

Fourth, the scope of the parent guarantee must be read correctly. The Onshore ECB terms in the OM state that the Parent Guarantor guarantees the issuer's payment and performance obligations under the Onshore ECB Bonds and related Transaction Documents to ECB investors / secured parties. HFE's investor presentation also states that HFEPL provides a full-tenor unconditional and irrevocable guarantee for the INR ECBs. Therefore, this is an important support for the Onshore ECB obligations, but it does not mean that HFEPL or Hero Group provides a direct unconditional guarantee of the USD notes themselves. USD noteholders access the economic benefit of the HFEPL guarantee through the Onshore ECB receivables held by CRP and related collateral and guarantees. CRISIL's A+/Stable is a rating of HFEPL / HFE Global group's domestic debt and bank borrowings; it does not replace the rating on the CRP USD notes.

7. Capital Structure, Liquidity and Funding

The largest single issue for the CRP notes is the 25 March 2027 maturity. Fitch's issuance materials analysed DSCR on the assumption that, during the six-year tenor, part of principal would be repaid through scheduled amortisation and cash sweep while 70.25% of principal would need to be refinanced at maturity. The repayment table in HFE's February 2026 investor presentation shows aggregate scheduled amortisation of 2.75%, aggregate mandatory cash sweep of 27.00% and total repayment of 29.75% from March 2022 to September 2026.

Company materials confirm about USD 83.5mn of repayment through September 2025, but the actual amount outstanding at that date, the execution status after March 2026 and the actual amount outstanding immediately before the March 2027 maturity have not been confirmed. Even if 29.75% is repaid by September 2026 as scheduled, a simple calculation leaves 70.25% of the issue amount, or about USD 255mn. The Onshore ECB balance in HFEPL consolidated financials is informative, but because it includes accounting presentation, amortised cost, FX and current/non-current classification, it is not a direct substitute for the USD note balance. Therefore, this credit should be read not as a "short-dated bond maturing in 2027" but as an "Indian renewable Restricted Group bond facing a refinancing event in 2027."

Liquidity appears to have improved in company materials. HFE's February 2026 investor presentation states that cash was about USD 41mn as of September 2025. Receivables collection has also improved. These factors provide time for near-term interest payment, MCS execution and refinancing negotiations. However, USD 41mn is not enough by itself to repay more than USD 250mn of principal that may remain at maturity. Refinancing, asset-backed borrowing, parent support, sponsor capital or market issuance will be required.

Refinancing capacity depends on the capital-market access of HFEPL / HFE group. On 29 September 2025, CRISIL reaffirmed HFEPL at Crisil A+/Stable / Crisil A1, citing Hero group support, HFE Global group's diversified portfolio and financial flexibility in capital and bank markets as strengths. HFE's official website and SGX's KKR investment announcement also indicate a sponsor base including IFC, KKR and Hero Group. This is an important support for the 2027 refinancing.

However, the domestic A+ world that CRISIL assesses is not the same as the BB-/Ba2 world of the CRP USD notes. HFEPL's domestic bank debt and NCD ratings incorporate Hero promoter support and domestic financial-institution relationships. By contrast, the CRP notes are foreign-currency, cross-border obligations with Restricted Group cash-flow and refinancing risk. Even if refinancing is available in India, the legal route by which those funds are applied to redeem the USD notes and the treatment of hedging, taxes and remittances must be separately confirmed.

8. Rating Agency View

In March 2021, Fitch assigned a BB-(EXP) / Stable rating to CRP's USD senior secured notes due 2027. According to Fitch's issuance materials, the rating reflected the credit profile of HFE RG1's portfolio of eight projects across three states, comprising 273.0MW of solar and 231.5MW of wind. Fitch viewed the 46% of capacity contracted to SECI as a support, while treating the partly amortising structure and the large refinancing need at maturity as constraints. The average rating-case DSCR at issuance was 1.31x. Positive sensitivity required the Synthetic DSCR to be sustained above 1.35x, while negative sensitivities included a decline below 1.25x, low generation, transmission constraints at Gulbarga, longer payment cycles and worse refinancing terms.

In April 2024, ETEnergyWorld / PTI reported Fitch's affirmation of BB- / Stable. The article stated that the rating of the CRP notes reflected the Restricted Group, namely eight renewable projects across three states and their cash flows, that SECI would purchase 230MW, that power was sold to SECI and state-backed offtakers under long-term PPAs, and that refinancing risk from the partly amortising structure was incorporated into the rating. HFE's February 2026 investor presentation further states that Fitch affirmed BB- / Stable in August 2025. However, the full Fitch release from August 2025 could not be obtained in this public review, so that information should be treated as supplemental company disclosure.

For Moody's, the OM refers to an expected Ba2 rating, while Appleby's transaction release refers to (P)Ba2. HFE's February 2026 investor presentation states that Moody's affirmed Ba2 / Stable in November 2025. The presentation cites Moody's credit strengths as a diversified portfolio supported by long-term PPAs and structural features that enhance resilience under downside scenarios, and credit challenges as variation in operating performance by asset, exposure to financially weak offtakers and moderate financial metrics. This is broadly consistent with Fitch's view, but because Moody's primary release text could not be confirmed, the point is treated as a citation from company materials only.

Among Indian domestic rating agencies, CRISIL's rating on HFEPL was the most useful. On 29 September 2025, CRISIL reaffirmed HFEPL's bank debt, NCDs and related instruments at Crisil A+/Stable / Crisil A1. CRISIL cited financial and managerial support from the Hero promoter group, a diversified operating renewable energy portfolio and refinancing flexibility at HFEPL holding companies as strengths. Constraints included financial risk at the HFE Global group holding-company level, execution risk for 4.2GW of hybrid projects under construction, and resource, equipment and transmission risks inherent in renewable energy generation assets.

The CRISIL rating is not a direct rating of the CRP notes. CRISIL's analytical perimeter is the HFE Global group, including HFEPL, HWEPL, HSEPL, HREPL and numerous SPVs, and it also incorporates support expectations from BCIPL/BMOP. Therefore, the CRISIL A+ rating should not be treated as a "domestic-equivalent rating" for the CRP USD notes. Its appropriate use is limited to supporting evidence for the parent and group's access to domestic financial markets, sponsor support expectations and broader portfolio business base that may support the 2027 refinancing.

For India Ratings, ICRA, CARE, Acuite and similar agencies, this review did not identify current primary rating materials directly covering the CRP notes or HFE RG1. Even if ratings on HFE-related SPVs or Indian renewable projects are found at CARE or other agencies, they should not be used as a core basis in this report unless it is confirmed that the relevant SPV is included in HFE RG1 and that the parent, project, security and offtaker are the same.

9. Credit Positioning

The CRP notes sit in the low-BB category among Indian renewable Restricted Group-style USD high-yield bonds. At issuance, Fitch cited Continuum Energy Levanter, Azure Power Solar Energy and India Green Power Holdings as peers. CRP has a balance of wind and solar, SECI exposure and a cash-trap structure, while its average DSCR, refinancing ratio at maturity and payment cycle to state distribution companies are constraints. Fitch's issuance materials also treated the absence of a DSRA and maintenance reserve account as structural constraints. However, because this public-information review could not confirm the actual balance or effectiveness of cash reserves, restricted accounts, hedge collateral or equivalent liquidity buffers as of May 2026, it should not be asserted that no such buffers currently exist.

Even though it carries the same "renewable energy, long-term PPA, secured" label, CRP is not a simple project bond. It reduces principal through partial amortisation and MCS, but it ultimately assumes a large refinancing. In this respect, it has a stronger corporate-finance element than a fully amortising single-IPP project bond. Conversely, its restrictions on cash leakage outside the Restricted Group and its static asset-pool design make it closer to project finance than an ordinary holding-company high-yield bond.

A relative-value judgement on the CRP notes would require current price, yield, spread, outstanding amount, liquidity, dealer runs and comparisons with Indian renewable bonds of similar tenor. This review did not access Bloomberg or Refinitiv market data, so it does not make a cheap/rich assessment. What can be said from public information is that, as the 2027 maturity approaches, market valuation is likely to focus less on ordinary long-term PPA credit and more on the handling of the refinancing event.

If compared with Indian renewable foreign-currency bonds around the same BB-/Ba2 level, the relevant axes are: 1) bullet share at maturity, 2) DSCR and balance after cash sweep, 3) SECI ratio and state distribution company receivables, 4) latest availability / generation, 5) parent / sponsor capital access, 6) hedging and foreign-currency liquidity, and 7) early redemption / refinancing progress. CRP has some support from the SECI ratio and cash trap, while the concentration of refinancing in 2027 is the largest differentiating factor.

10. Key Credit Strengths and Constraints

The first factor supporting credit quality is that all assets are operating and construction risk is limited. HFE's investor presentation states that 100% of the Restricted Group is operating, with wind and solar assets diversified across three states. This makes cash flow more predictable than for bonds directly exposed to construction delays or cost overruns.

The second support is long-term PPAs and SECI exposure. Fitch's issuance materials state that 46% of capacity is contracted to SECI, while the latest company materials show 47%. The remainder is mainly contracted under PPAs with state distribution companies or C&I customers, and merchant power-price risk is limited. HFE materials state that 84.67% is contracted under PPAs of more than 20 years. This supports the potential to raise domestic long-term debt secured by the remaining PPAs at the time of 2027 refinancing.

The third support is the cash trap and MCS. The structure retains surplus cash inside the Restricted Group and reduces principal through scheduled amortisation and mandatory cash sweep, limiting leakage to the parent. The reported repayment of about USD 83.5mn through September 2025 is important evidence that the structure has functioned in practice.

The fourth support is sponsor and parent access. HFE is affiliated with Hero Group and also has support from IFC and KKR. CRISIL assigns HFEPL / HFE Global group an A+/Stable rating and incorporates support from the Hero promoter group and financial flexibility. This is supporting evidence for the bank and market access needed for the 2027 refinancing.

The first constraint is refinancing risk. Even after scheduled repayments, a large amount of principal remains. If market conditions, domestic interest rates, foreign-currency funding, hedging costs, ratings or parent liquidity deteriorate by the 2027 maturity, credit quality could move down quickly. Fitch also included worse refinancing terms among its downgrade sensitivities at issuance.

The second constraint is variability in generation resources and operating performance. FY2025 generation declined by 4.48%, and revenue, EBITDA and PAT declined. H1 FY26 materials show some stability, but wind and solar irradiation vary year by year. As Fitch and Moody's note, variation in operating performance is a credit constraint.

The third constraint is state distribution company and collection risk. Receivables have improved, but dependence on MPPMCL, MSEDCL and HESCOM remains. Even for SECI exposure, the ultimate DISCOM payment structure is relevant. India's must-run status for renewable power and payment-improvement mechanisms are supports, but they do not eliminate delays, disputes, tariff changes, subsidies or transmission constraints.

The fourth constraint is structural complexity. The layers of USD notes, INR ECB, hedging, collateral, Indian regulation, tax, offshore remittance and parent guarantee overlap. In normal times, this can be an efficient funding structure, but under stress it becomes complicated to determine which creditor can reach which asset in which jurisdiction and in what priority.

11. Downside Scenarios and Monitoring Triggers

The most important downside scenario is a 2027 refinancing that can only be executed on terms that are more expensive, shorter-term or incomplete relative to expectations. If a large balance remains at maturity and domestic bank borrowing, capital-market issuance, parent support or asset-backed borrowing is not sufficiently available, bondholders would become more dependent on refinancing negotiations, maturity extension, buybacks, covenant amendments or parent / sponsor support.

The second scenario is a simultaneous decline in generation and delay in collections. If low wind, low solar irradiation, transmission constraints, equipment failure or curtailment reduce revenue while collections from state distribution companies are delayed, operating cash flow would come under rapid pressure. A 4-5% generation decline like FY2025 may be manageable, but several consecutive years of low generation or an outage at a major asset would reduce DSCR and headroom after the cash trap.

The third scenario is a change in offtaker, regulation or tariff. The impairment at BGEL showed that PPA expiry and expected tariff decline can impair accounting value. If C&I tariffs or recontracting prices after state FITs decline, DISCOM payment behaviour worsens, or VGF / tax-compensation recovery is delayed, collateral value and CFADS visibility at refinancing would weaken.

The fourth scenario is an increase in funding needs at HFEPL / HFE group. CRISIL identifies the HFE Global group's 4.2GW of hybrid projects under construction and holding-company-level debt as constraints. Capex, working capital, construction delays and higher parent debt for new projects could reduce the capacity to support CRP's 2027 refinancing.

The fifth scenario is a problem with hedging, FX or remittance. The USD notes have a fixed coupon, but the repayment source is rupee-denominated cash flow in India. The credit assumes that hedging is adequately maintained and that counterparties, collateral, tax and FX remittance mechanics work. Higher hedging costs, worse termination value, regulatory changes or remittance delays could make USD note payments difficult even if the projects themselves remain operating.

The specific monitoring items are as follows: Restricted Group FY2026 audited financial statements, revenue / EBITDA / generation after H1 FY26, asset-level PLF, outage history and curtailment, execution of scheduled amortisation / MCS in March 2026 and September 2026, the 2027 refinancing plan, actual amount outstanding, cash and restricted-account balances, DSCR, cash reserve or reserve-equivalent buffers, hedge notional and mark-to-market value, latest Fitch/Moody's surveillance, CRISIL's outlook on HFEPL, and receivables collection by state distribution company.

12. Credit View and Monitoring Focus

Based on public information, the current credit quality is that of an Indian renewable Restricted Group bond around BB-/Ba2 on the international rating scale. It is not investment grade and should be viewed as a low-BB high-yield credit exposed to the 2027 refinancing event. The credit direction is supported by receivables collection, principal repayment through September 2025, H1 FY26 cash generation and continuation of Stable ratings from Fitch/Moody's. However, generation and FY2025 earnings were weaker, and 2027 refinancing progress is not yet confirmed. Sensitivity is therefore higher to downside events than to upside. The probability of a rapid change in level or direction is moderate, and the view could be revised down over a short period if any of 2027 refinancing terms, actual amount outstanding, DSCR, hedging, parent support or rating actions deteriorates.

The view is supported by operating and diversified renewable energy assets, long-term PPAs, SECI-contracted capacity, improved receivables collection, cash trapping inside the Restricted Group, principal reduction through MCS, and sponsor / capital access through HFEPL / Hero / KKR / IFC. Despite lower revenue and generation in the year ended March 2025, operating cash flow was positive and debt repayment and interest payments were made. The H1 FY26 revenue and EBITDA shown in the February 2026 company materials also indicate that the assets continue to generate cash.

However, investment analysis should be centred on refinancing risk. Even if repayments proceed as scheduled, a meaningful principal balance will remain in March 2027. The CRP notes are not fully amortising project bonds; they are designed to ring-fence cash flow, repay part of principal and ultimately refinance on the back of remaining PPAs and parent / market access. Therefore, the current credit profile is not simply "stable because the assets are operating and have PPAs." It depends on whether the group can maintain operating performance, cash, ratings and sponsor access at a level sufficient to refinance by 2027.

For bondholders, the most important unconfirmed items are the actual amount outstanding, execution of the March / September 2026 repayments, current cash, DSCR, hedging, reserves, waiver history and refinancing negotiations. Because market price and spreads could not be confirmed, this report does not make a relative-value judgement on buy, hold or sell. From a credit perspective alone, however, until refinancing progress ahead of the 2027 maturity is confirmed, this should be treated conservatively among similarly rated renewable energy credits in the same country because of its event risk.

Short Summary & Conclusion

Clean Renewable Power (Mauritius) is a Mauritius SPV that issued USD 363mn of 2027 notes for an Indian renewable energy Restricted Group under Hero Future Energies. Credit quality is supported by operating wind and solar assets, long-term PPAs including SECI, cash trap and MCS mechanics, and refinancing access through HFEPL / sponsors. Constraints are the large refinancing balance at the 2027 maturity, renewable resource variability, state distribution company collections, and hedging / remittance structure. The current view is stable, but sensitivity to downside events is high because refinancing progress is unconfirmed. Investment analysis should therefore always verify the actual amount outstanding, DSCR, hedging and latest rating actions.

Sources

1. SGX, Clean Renewable Power (Mauritius) Pte. Ltd., listing prospectus page, "US$363,000,000 4.25% Senior Notes due 2027", prospectus dated 18 Mar 2021.
   https://links.sgx.com/1.0.0/prospectus-circulars/42270

2. SGX, Clean Renewable Power (Mauritius) Pte. Ltd., Offering Memorandum dated 18 Mar 2021.
   https://links.sgx.com/FileOpen/Clean%20Renewable%20Power%20%28Mauritius%29%20Pte.%20Ltd%20USD363m%204.25%20per%20cent.%20Senior%20Notes%20due%202027%20Offering%20Memorandum%20dtd%2018%20March%202021.ashx?App=Prospectus&FileID=47985

3. SGX, Clean Renewable Power (Mauritius) Pte. Ltd., "Financial Statements and Related Announcement::Full Yearly Results", 26 Jul 2025, for period ended 31 Mar 2025.
   https://links.sgx.com/1.0.0/corporate-announcements/4G5K4MTI412J903H/2b8e6fe553981977a245a511d119df892cad4cbd27e1670b1313303deeea11d0

4. SGX, Clean Renewable Power (Mauritius) Pte. Ltd., FY2025 Restricted Group Special Purpose Combined Financial Statements PDF.
   https://links.sgx.com/1.0.0/corporate-announcements/4G5K4MTI412J903H/853175_RG%20Signed%20including%20Variance%20FS-%20March%202025.pdf

5. Hero Future Energies, Bondholder Information page.
   https://www.herofutureenergies.com/investor-relations-bondholders

6. Hero Future Energies, "H1 '26 Update on Restricted Group (CRPM Pte Ltd Bond)", investor presentation, February 2026.
   https://www.herofutureenergies.com/investorrelation/investor-presentation-h1-fy26.pdf

7. Hero Future Energies, "Update on Restricted Group (CRPM Pte Ltd Bond)", investor presentation, September 2025.
   https://www.herofutureenergies.com/investorrelation/investor-presentation-sep25.pdf

8. Hero Future Energies, About Us page, accessed 12 May 2026.
   https://www.herofutureenergies.com/about-us

9. SGX, "KKR Invests in Hero Future Energies in $450 Million Transaction", 23 Sep 2022.
   https://links.sgx.com/1.0.0/corporate-announcements/DDDIU3M3826MHFYZ/16b0eb0aacacd20e92107d765d860b1c34b97a1b6080ea4eb2af5e30d309772a

10. CRISIL Ratings, "Hero Future Energies Private Limited: Ratings reaffirmed at Crisil A+/Stable/Crisil A1; Rated amount enhanced for Bank Debt", 29 Sep 2025.
    https://www.crisilratings.com/mnt/winshare/Ratings/RatingList/RatingDocs/HeroFutureEnergiesPrivateLimited_September%2029_%202025_RR_374312.html

11. Investing.com / Reuters republication of Fitch Ratings, "Fitch Rates Clean Renewable Power's Proposed USD Notes First-Time 'BB-(EXP)'; Outlook Stable", 15 Mar 2021.
    https://in.investing.com/news/fitch-rates-clean-renewable-powers-proposed-usd-notes-firsttime-bbexp-outlook-stable-2647020

12. ETEnergyWorld / PTI, "Fitch Ratings affirms Clean Renewable Power's USD 363 mn notes 'BB-' rating with stable outlook", 19 Apr 2024.
    https://energy.economictimes.indiatimes.com/news/renewable/fitch-ratings-affirms-clean-renewable-powers-usd-363-mn-notes-bb-rating-with-stable-outlook/109427091

13. Appleby, "Clean Renewable Power Pte raises US$363 million through senior secured notes", 7 Apr 2021.
    https://www.applebyglobal.com/news/appleby-mauritius-advises-in-structured-finance-deal-of-us363m-secured-notes-issued-by-clean-renewable-power-pte/

Unverified / Pending

• Restricted Group audited financial statements for the year ended March 2026 and the FY2026 full-year operating review.
• Execution status of scheduled amortisation / MCS in March 2026 and September 2026, and actual amount outstanding as of March 2027.
• Latest trustee / compliance certificate, DSCR calculation, cash trap, restricted payment compliance, and waiver / amendment history.
• Current existence of a DSRA or maintenance reserve account, and the actual balance and effectiveness of cash reserves, restricted accounts, hedge collateral and other reserve-equivalent liquidity buffers.
• Latest status of hedge counterparties, hedge notional, mark-to-market value, collateral posting and termination-priority ranking.
• Asset-level FY2025 / FY2026 generation, PLF, outage history, insurance recoveries, curtailment, Gulbarga transmission constraints and operating status after Rajkot transformer failure.
• Current price, YTW, Z-spread, G-spread, liquidity and relative levels versus Indian renewable bonds of similar tenor and rating.
• Primary release texts for Fitch's August 2025 affirmation and Moody's November 2025 affirmation. These are confirmed in company materials, but the direct release texts were not obtained in this public search.
• Whether India Ratings, ICRA, CARE, Acuite or similar agencies maintain direct ratings on the CRP notes or HFE RG1. Within the public-search scope as of 12 May 2026, only CRISIL's HFEPL / HFE Global group rating was confirmed as the main domestic rating-agency material.