Gujarat: KPI Green Gets Rs. 3,200 Cr From SBI For Its 1+ GWp Hybrid IPP Projects

KPI Green Energy has secured a ₹3,200 crore sanction from the State Bank of India (SBI) for its over 1 GWp solar and hybrid Independent Power Producer (IPP) projects in Gujarat.

In a press release, KPI Green Energy said the sanction was obtained from SBI’s Project Finance & Structured Business Unit (PF&SBU). The company added that the projects together aggregate to over 1 GWp of its IPP portfolio. The facilities, comprising both fund-based and non-fund-based components, will part-finance the development of its 250 MW solar project and 370 MW hybrid project in Gujarat.

This announcement follows the issuance of KPI Green Energy's first green bond of up to ₹670 crore on the National Stock Exchange (NSE), Mumbai. The issuance is backed by a 65% guarantee from GuarantCo, part of the Private Infrastructure Development Group (PIDG).

The five-year bond, carrying a coupon rate of 8.50% per annum with a quarterly amortising profile, has been rated AA+(CE) by CRISIL and ICRA. KPI Green said it plans to use the bond proceeds to expand its solar, wind, and hybrid power portfolio, primarily in Gujarat. The initiative mobilises about USD 175 million in domestic institutional capital and diversifies KPI Green’s funding base beyond traditional banking channels.

Project Details

KPI Green said it secured the sanctioned facilities to support two significant renewable projects that are:

1. 250 MW (AC) / 350 MWp (DC) Solar Power Project

2. 370 MW Hybrid Power Project, comprising 557 MWp Solar portion and 124.20 MW Wind portion

The company secured both these projects with a 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. KPI-Green's projects will be funded with a 75:25 debt-equity ratio, with proceeds earmarked for project cost financing, reimbursement of incurred expenditure, and related development expenses.

Upon commissioning, these projects will make a substantial contribution to KP Group’s 10 GW target by 2030. It explained that the revenue recognition for this project will begin through long-term PPAs, strengthening recurring revenue streams and profitability.

Management Commentary

Faruk Patel, Chairman & Managing Director, KPI Green Energy Limited, stated: “This landmark sanction from the State Bank of India is a strong validation of KPI Green Energy’s capabilities and long-term vision. Financing is a critical enabler of large-scale infrastructure, and this partnership empowers us to accelerate capacity addition under India’s renewable transition."

Elaborating on this, he mentioned, "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. We remain fully committed to delivering these projects ahead of stipulated timelines and setting new benchmarks in execution excellence.”