KPI Green Lists India’s First Externally Credit-Enhanced Green Bond Worth ₹670 Crore

18 Sep 2025 , 01:04 PM

KPI Green Energy, the Gujarat-based renewable power producer, has entered the debt market with its first ₹670 crore green bond, now listed on the National Stock Exchange of India. The bond has a five-year tenure and offers investors an 8.5% annual coupon, with repayments scheduled on a quarterly basis.

Backing the issue is a 65% partial guarantee from GuarantCo, part of the Private Infrastructure Development Group, supported by governments including the UK, Switzerland, Australia, Sweden, Netherlands, Canada, and France. Funds raised will be deployed towards scaling solar, wind, and hybrid projects across the country, widening KPI Green’s renewable energy footprint.

The new projects are projected to deliver clean electricity to nearly 2.1 lakh people and enterprises every year, while preventing over 3.44 lakh tonnes of carbon emissions. The company has already built 1 GW of renewable capacity and is progressing steadily towards its 2030 goal of 10 GW, backed by a pipeline that exceeds 3 GW.

Market watchers note that the issue sets an example for Indian corporates seeking sustainable capital through innovative structures and points to growing investor appetite for climate-conscious financial products. For KPI Green, the transaction enhances access to new liquidity sources and positions the company well for future fund-raising in both domestic and international green finance markets.

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