New Delhi: KPI Green Energy Ltd, a Gujarat-based renewable energy developer, has launched India’s first externally credit-enhanced green bond, raising Rs 670 crore through a listing on the National Stock Exchange. The issuance marks a milestone for sustainable finance in India’s renewables sector.
Follow Energy Watch on X
The five-year bond carries an annual coupon rate of 8.50 percent and a quarterly amortisation profile. It is backed by a 65 percent partial guarantee from GuarantCo, a Private Infrastructure Development Group entity supported by the governments of the UK, Switzerland, Australia, Sweden, Netherlands, Canada and France.
GuarantCo’s backing, combined with its AA− Fitch and A1 Moody’s ratings, enabled the bond to secure an AA+(CE) rating from both CRISIL and ICRA. This credit enhancement has widened access for domestic institutional investors, including infrastructure funds, mutual funds, and insurance companies.
Funds raised through the issuance will be deployed to expand KPI Green Energy’s solar, wind and hybrid project portfolio across India. The company said the projects are expected to supply clean electricity to around 2.1 lakh people and businesses annually while avoiding over 3.44 lakh tonnes of carbon emissions each year.
“This mobilises domestic institutional investment beyond conventional banking sources and accelerates India’s clean energy transition,” the company said in a statement.
KPI Green Energy has developed 1 GW of renewable capacity to date and is targeting 10 GW by 2030. Its project pipeline already exceeds 3 GW, placing it among the frontrunners in India’s renewables sector.
Dr Faruk G Patel, Chairman and Managing Director, said: “By issuing India’s first externally credit-enhanced green bond, KPI Green Energy reinforces its commitment to powering communities with sustainable energy while diversifying its financing routes. This milestone sets new benchmarks for ESG investment and supports the United Nations’ Sustainable Development Goals for clean energy, decent work and growth, and climate action.”
Follow Energy Watch on LinkedIN
The company said the transaction sets a precedent for Indian corporates seeking sustainable capital through innovative credit enhancement mechanisms and highlights the rising appetite among domestic investors for responsible financial products. It also positions KPI Green Energy to tap new liquidity pools and strengthens its preparedness for future fundraising in both domestic and global green finance markets.
