KPI Green Energy Limited, a leading renewable energy developer and operator, has set a landmark in sustainable financing by issuing India’s first externally credit-enhanced Green Bond at the National Stock Exchange (NSE), Mumbai.
The ₹670 crore issuance carries a five-year tenor with an 8.5% annual coupon and a quarterly amortisation structure. Backed by a 65% guarantee from GuarantCo, a member of the Private Infrastructure Development Group (PIDG), the bond has received a rating of AA+(CE) from CRISIL and ICRA. The credit enhancement significantly broadens the investor base, enabling participation from infrastructure debt funds, mutual funds, and insurance companies.
Bond proceeds will be deployed to expand KPI Green’s solar, wind, and hybrid energy portfolio across Gujarat. The projects are expected to supply clean electricity to nearly 2,10,000 people and businesses each year, while helping avoid more than 3,44,000 tonnes of CO₂ emissions annually.
“This is a milestone for KPI Green Energy and for India’s renewable sector,” said Dr Faruk G Patel, CMD of KPI Green Energy. “Our first green bond, supported by GuarantCo and rated AA+ by CRISIL and ICRA, will not only expand our clean energy projects in Gujarat but also mobilise USD 175 million of domestic capital and diversify our funding sources. This paves the way for future ESG-linked and potential offshore issuances.”
The transaction aligns with India’s clean energy transition goals and contributes directly to the United Nations Sustainable Development Goals (SDGs), Affordable and Clean Energy (SDG 7), Decent Work and Economic Growth (SDG 8) and Climate Action (SDG 13).
With over 1 GW of renewable capacity already installed by FY 2025–26 and a pipeline exceeding 3 GW, KPI Green has set a target of achieving 10 GW by 2030. The company’s landmark green bond issuance is expected to serve as a precedent for other corporates to access new pools of domestic liquidity through credit-enhanced structures.
