KPI Green Energy, a renewable energy developer based in Gujarat, has successfully listed its first green bond valued at ₹670 crore on the National Stock Exchange of India. This development signifies a notable progress in sustainable finance within India’s renewable energy sector, as stated by the company.
The five-year bond, which features an annual coupon rate of 8.50 percent and a quarterly amortization plan, is backed by a 65 percent partial guarantee from GuarantCo, part of the Private Infrastructure Development Group. GuarantCo is funded by the governments of the United Kingdom, Switzerland, Australia, Sweden, the Netherlands, Canada, and France.
With a credit rating of AA− from Fitch and A1 from Moody’s, GuarantCo’s external credit enhancement has allowed the bond to achieve an AA+(CE) rating from both CRISIL and ICRA. This rating expansion attracts long-term domestic investors, including infrastructure funds, mutual funds, and insurance companies.
The funds raised will be utilized to expand KPI Green Energy’s solar, wind, and hybrid project portfolio across India. The new projects are anticipated to provide clean electricity to approximately 210,000 individuals and businesses each year, while also contributing to an annual reduction of over 344,000 tonnes of carbon emissions.
This issuance not only accelerates India’s transition toward clean energy but also mobilizes ₹670 crore of domestic institutional investment beyond conventional banking avenues. KPI Green Energy has developed 1 GW of renewable capacity and is on track to meet its goal of 10 GW by 2030. Its ongoing project pipeline exceeds 3 GW, positioning the company among the leaders in renewable energy expansion in the country.
This transaction sets a benchmark for Indian corporations looking to secure sustainable capital through innovative credit enhancement mechanisms and underscores the increasing demand among domestic investors for responsible financial products. It enables KPI Green Energy to tap into new liquidity sources and positions the company for future fundraising efforts in both domestic and international green finance markets.
