KPI Green Energy secures ₹3,200 cr sanction from SBI for Gujarat projects

The sanction will part-finance the firm's 250 MW solar project and 370 MW hybrid project, strengthening its IPP portfolio with a combined capacity of over 1 GWp

Renewable energy developer and operator KPI Green Energy on Thursday secured a sanction of ₹3,200 crore from the State Bank of India for its solar and hybrid independent power producer (IPP) projects in Gujarat, the company said in an exchange filing.

 

The sanction will part-finance KPI Green Energy’s 250 MW solar project and 370 MW hybrid project, strengthening its IPP portfolio with a combined capacity of over 1 GWp.

 

“Financing is a critical enabler of large-scale infrastructure, and this partnership empowers us to accelerate capacity addition under India’s renewable transition. With over 1 GWp of new capacity being developed, we will significantly expand our operational portfolio, strengthen annuity income streams, and create long-term value for all stakeholders,” said Faruk Patel, chairman and managing director, KPI Green Energy.

 

Cut 1.5 MT of CO2 emissions annually

According to the company, these projects will contribute to KP Group’s 10 GW target by 2030 and eliminate over 1.5 million tonnes (MT) of CO2 emissions annually. 

 

Both projects are backed by 25-year long-term Power Purchase Agreements (PPAs) with Gujarat Urja Vikas Nigam Limited (GUVNL) and are being developed in the Bharuch and Surendranagar districts of Gujarat. 

The projects will follow a 75:25 debt-equity structure, with funds allocated for project costs, reimbursement of prior expenses, and related development activities.

First green bond listing

Earlier this month, KPI Green Energy announced the successful listing of its inaugural green bond worth ₹670 crore on the National Stock Exchange of India. The five-year bond carries an annual coupon rate of 8.50 per cent with a quarterly amortisation profile. 

The issue is supported by a 65 per cent partial guarantee from London-based GuarantCo, part of the Private Infrastructure Development Group, which is backed by the governments of the United Kingdom, Switzerland, Australia, Sweden, the Netherlands, Canada, and France.

 

The company said this marks a significant step for sustainable finance in India’s renewable sector. Proceeds from the bond will be used to expand KPI Green Energy’s solar, wind, and hybrid project portfolio across India, it added.