KPI Green Energy Ltd.: India's first externally credit-enhanced Green Bond

PRNewswire
Mumbai (Maharashtra) [India], September 17: As India's economy expands and energy demand rises, reliance on fossil fuels alone is no longer sustainable. KPI Green Energy is committed to driving this transition through clean solutions--solar, wind, and hybrid power--that ensure both growth and sustainability.
Large-scale renewable projects, however, demand innovative financing. With the launch of India's first externally credit-enhanced Green Bond, KPI Green Energy sets a new benchmark in sustainable finance. Unlike traditional bonds, Green Bonds are dedicated exclusively to eco-friendly initiatives--offering investors attractive opportunities while accelerating India's journey toward a greener future.
For the first time in India, KPI Green Energy Limited has pioneered an externally credit-enhanced Green Bonds of ₹670 Cr, at a coupon rate of 8.50% p.a. and a 5-year quarterly amortising profile--a historic milestone in renewable energy. Backed by a 65% guarantee from GuarantCo, a part of Private Infrastructure Development Group, funded by governments of the UK, Switzerland, Australia, Sweden, the Netherlands via FMO, France, and Global Affairs Canada, this marks India's first externally credit-enhanced Green Bond by a renewable developer. GuarantCo is rated AA- (Fitch) and A1 (Moody's), enabling KPI Green's bond to achieve AA+ (CE) from top range agencies - CRISIL and ICRA.
The proceeds of the bond will help KPI Green to expand its solar, wind and hybrid power portfolio capacity across the country. The project will annually provide c. 210,000 people and several businesses with improved access to clean electricity and avoid more than c. 344,000 tCO₂e per annum.
This initiative helps to deepen the bond markets in India, which has been the focal point for all stakeholders. This will lead to opening doors for others corporates to access newer liquidity pools through credit enhancements, thereby accelerating renewable energy infrastructure development.
KPI Green Energy started its renewable journey in 2008. By early FY 2025-26, it has set up 1 GW of solar and hybrid plants, has over 3+ GW of projects in hand, and has saved 2.1 million metric tons of CO₂. Across the KP Group, 6 GW of projects have been energized, equivalent to planting 260 million trees. With a target of 10 GW by 2030, these Green Bonds are not just financial instruments--they are enablers of a greener tomorrow.
As KPI Green's Chairman & Managing Director, Dr. Faruk G. Patel, says:
"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."
KPI Green Energy--powering progress, responsibly.
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