KPI Green Energy Completes India’s First Externally Credit-Enhanced Green Bond at NSE, Mumbai

Gujarat-based renewable energy developer and operator KPI Green Energy recently issued its first Green Bond of up to ₹670 crore at the National Stock Exchange (NSE), Mumbai.

In a press release, KPI Green said this marks a key development as one of India’s first externally credit-enhanced Green Bonds by a renewable energy developer. The issuance is backed by a 65% guarantee from GuarantCo, part of the Private Infrastructure Development Group (PIDG), the company added.

The company explained, the five-year bond, carrying a coupon rate of 8.50% per annum with a quarterly amortising profile, has been assigned a rating of AA+(CE) by CRISIL and ICRA. This rating uplifts the strength of the credit guarantee mechanism and opens avenues for wider investor participation, including infrastructure debt funds, mutual funds, and insurance companies, it added.

Purpose of Securing Green Bonds

Having set up 1 GW of renewable capacity by FY 2025–26 and with more than 3 GW of projects in hand, KPI Green aims to reach 10 GW by 2030.

On the recent announcement, KPI Green said the bond proceeds will be used to expand its solar, wind, and hybrid power portfolio, primarily in Gujarat. The company added, “The projects financed are expected to provide clean electricity access to nearly 210,000 people and several businesses annually, while avoiding more than 344,000 tCO2e each year. This initiative not only strengthens India’s renewable infrastructure but also mobilises about USD 175 million in domestic institutional capital, diversifying KPI Green’s funding base beyond traditional banking channels.”

KPI Green Energy Chairman & Managing Director, Faruk G. Patel, said: “KPI Green Energy has issued its first green bond of up to ₹670 crore, the first externally credit-enhanced by a renewable developer in India, backed by a 65% GuarantCo (PIDG) guarantee, rated AA+ by CRISIL and ICRA, and listed on NSE. Proceeds will expand our solar, wind, and hybrid projects in Gujarat, improving clean power for ~210,000 people, avoiding >344,000 tCO₂e, and mobilising ~USD 175m of domestic capital while diversifying our funding and paving the way for ESG and potential USD issuances. This milestone advances SDGs 7, 8, and 13; we thank our partners and investors."

This transaction contributes directly to the United Nations Sustainable Development Goals, Affordable and Clean Energy (SDG 7), Decent Work and Economic Growth (SDG 8), and Climate Action (SDG 13), and sets a precedent for other corporates to tap new liquidity pools through credit enhancements.