KPI Green Energy, a leading renewable energy developer and operator based in Gujarat, has successfully listed its inaugural green bond worth ₹670 crore on the National Stock Exchange of India. This marks a significant advancement for sustainable finance within the Indian renewables sector.
The five-year bond, carrying an annual coupon rate of 8.50% with a quarterly amortisation profile, is supported by a 65% partial guarantee from GuarantCo , part of the Private Infrastructure Development Group, which is funded by the governments of the United Kingdom, Switzerland, Australia, Sweden, Netherlands, Canada and France. GuarantCo is rated AA− by Fitch and A1 by Moody’s. This external credit enhancement has enabled AA+(CE) rating from both CRISIL and ICRA, broadening the investor base to include long-term domestic institutions such as infrastructure funds, mutual funds, and insurance companies.
Bond proceeds will be used to expand KPI Green Energy’s solar, wind, and hybrid project portfolio, across India. These new projects are expected to bring clean electricity to approximately 210,000 people and businesses each year, while avoiding more than 344,000 tonnes of carbon emissions annually. This step not only accelerates India’s clean energy transition but also mobilizes ₹670 crore of domestic institutional investment beyond conventional banking sources.
KPI Green Energy has already developed 1 GW of renewable capacity and continues to advance towards its target of 10 GW by 2030. The company’s sustained pipeline, exceeding 3 GW, places it among the country’s frontrunners in renewable energy expansion.
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 Nation’s Sustainable Development Goals for SDG 7 (Clean Energy), SDG 8 (Decent Work & Growth), and SDG 13 (Climate Action).
This transaction establishes a precedent for Indian corporates seeking sustainable capital through innovative credit enhancement mechanisms and highlights the growing appetite among domestic investors for responsible financial products. It positions KPI Green Energy to access new pools of liquidity and prepares the company for future fundraising in both the domestic and international green finance markets.
