KPI Green Energy Launches India’s First Externally Credit-Enhanced Green Bond Worth INR 670 Crore

KPI Green Energy Ltd. has become the first renewable energy developer in India to issue an externally credit-enhanced Green Bond, raising INR 670 crore to fund its clean energy portfolio.

The bond carries a coupon rate of 8.5 percent per annum with a five-year quarterly amortising profile. It is backed by a 65 percent guarantee from GuarantCo, part of the UK-based Private Infrastructure Development Group (PIDG), which is funded by the governments of the UK, Switzerland, Australia, Sweden, the Netherlands (via FMO), France, and Canada. GuarantCo’s strong ratings, AA− from Fitch and A1 from Moody’s, enabled the bond to secure AA+ (CE) ratings from domestic agencies CRISIL and ICRA.

Proceeds from the issue will be used to expand KPI Green’s solar, wind, and hybrid power capacity across India. According to company estimates, the projects financed through this bond will supply clean electricity to around 210,000 people and several businesses annually, while helping avoid approximately 344,000 tonnes of CO₂ emissions each year.

The issuance also represents a broader milestone for India’s debt markets, deepening access to green finance. Analysts note that such credit-enhanced instruments could pave the way for other corporates to tap new liquidity pools for renewable energy infrastructure.

As per the firm, by early FY 2025–26, the company had commissioned 1 GW of solar and hybrid capacity, with more than 3 GW under development. Across the group, 6GW of renewable projects have been energised to date, with a target of 10 GW by 2030. The company also estimates that its projects have saved 2.1 million metric tonnes of CO₂, equivalent to planting around 260 million trees.

Commenting on the development, Chairman and Managing Director Dr. Faruk G. Patel said: “We have borrowed this planet from our future generations. It is our duty to leave behind clean air and a healthier world. Renewable energy is not just business, it is a noble cause for nature, humanity, and all living beings.”