KPI Green lists India's first externally credit-enhanced ₹670 cr green bond

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 is rated AA- by Fitch and A1 by Moody's.

This external credit enhancement has enabled 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.

Bond proceeds will be used to expand KPI Green Energy's solar, wind, and hybrid project portfolio, across India, the statement said.

The new projects are expected to bring clean electricity to around 210,000 people and businesses each year, while reducing more than 344,000 tonnes of carbon emissions annually.

This step 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 continues to advance towards its target of 10 GW by 2030.

The company's sustained pipeline, exceeding 3 GW, places it 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 and highlights the growing appetite among domestic investors for responsible financial products, it stated.

It positions KPI Green Energy to access new pools of liquidity and prepares the company for future fundraising in both the domestic and international green finance markets.