New Delhi: Gujarat-based renewable energy developer and operator KPI Green Energy on Thursday announced the successful listing of its inaugural green bond worth Rs 670 crore on the National Stock Exchange of India.
This marks a significant advancement for sustainable finance in India’s renewable sector, a company statement said.
The five-year bond carries an annual coupon rate of 8.50 per cent with a quarterly amortisation profile. It is supported by a 65 per cent partial guarantee from GuarantCo, part of the Private Infrastructure Development Group, which is funded by the governments of the United Kingdom, Switzerland, Australia, Sweden, Netherlands, Canada, and France. GuarantCo holds a credit rating of AA- by Fitch and A1 by Moody’s.
Thanks to this external credit enhancement, the bond has received an AA+(CE) rating from both CRISIL and ICRA, broadening the investor base to include long-term domestic institutions such as infrastructure funds, mutual funds, and insurance companies.
The proceeds from the bond will be used to expand KPI Green Energy’s solar, wind, and hybrid project portfolio across India. The new projects are expected to supply clean electricity to approximately 210,000 people and businesses annually while reducing over 344,000 tonnes of carbon emissions every year.
This initiative not only accelerates India’s clean energy transition but also mobilises Rs 670 crore of domestic institutional investment beyond conventional banking sources.
KPI Green Energy has already developed 1 GW of renewable capacity and is actively working towards its target of 10 GW by 2030. With a sustained project pipeline exceeding 3 GW, the company stands among the country’s frontrunners in renewable energy expansion.
This transaction establishes a precedent for Indian corporates seeking sustainable capital through innovative credit enhancement mechanisms. It also highlights the growing appetite among domestic investors for responsible financial products.
Furthermore, it positions KPI Green Energy to access new pools of liquidity and prepares the company for future fundraising activities in both domestic and international green finance markets.
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https://www.freepressjournal.in/business/kpi-green-energy-lists-indias-first-externally-credit-enhanced-green-bond-worth-670-crore