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KPI Green Energy has listed an INR 670 crore green bond on the NSE, marking India's first credit-enhanced issuance of this kind by a renewable energy developer. The five-year bond carries an 8.50 per cent coupon and is supported by a 65 per cent guarantee from GuarantCo, securing AA+(CE) ratings from CRISIL and ICRA. Funds raised will be used to expand solar, wind, and hybrid projects, expected to serve 210,000 people annually and cut 344,000 tonnes of carbon emissions. With 1 GW already installed and a target of 10 GW by 2030, the company holds over 3 GW in its pipeline.
KPI Green Energy, a renewable energy developer based in Gujarat, has listed its first green bond on the National Stock Exchange of India with a size of INR 670 crore. The company said this issuance represents India's first externally credit-enhanced green bond by a renewable energy developer, setting a benchmark for the sector. Advertisement
The bond has a five-year tenure and carries an annual coupon rate of 8.50 per cent, with repayment scheduled through a quarterly amortisation structure. To strengthen investor confidence, the bond is backed by a 65 per cent partial guarantee from GuarantCo, a member of the Private Infrastructure Development Group. GuarantCo is supported by several governments, including those of the United Kingdom, Switzerland, Australia, Sweden, Netherlands, Canada, and France, and holds ratings of AA- from Fitch and A1 from Moody's.
This external guarantee enabled the bond to secure a credit rating of AA+(CE) from both CRISIL and ICRA. The enhanced rating has opened the bond to long-term domestic investors, such as infrastructure funds, mutual funds, and insurance companies, helping diversify funding sources beyond conventional bank financing.
The proceeds from the issuance will be directed towards expanding KPI Green Energy's solar, wind, and hybrid project portfolio across India. The planned projects are expected to deliver clean electricity to around 210,000 people and businesses each year and help reduce more than 344,000 tonnes of carbon emissions annually. This step contributes directly to India's renewable energy growth and climate targets while also creating access to large-scale institutional investments.
KPI Green Energy has already developed 1 GW of renewable energy capacity and has set a target to reach 10 GW by 2030. With an active pipeline of over 3 GW, the company has positioned itself among the leading players in India's renewable expansion. The green bond strengthens its capacity to raise funds in both domestic and international markets, allowing it to build on its current projects and move towards its long-term capacity goals.
This transaction also sets a new example for Indian corporates looking to raise sustainable capital. It shows that innovative structures such as credit enhancements can make renewable energy investments more attractive for a wider group of investors. The listing is expected to encourage more Indian companies to explore such financing routes in the future.
Source PTI
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