KPI Green raises Rs 670 crore through India’s first externally credit-enhanced green bond

KPI Green Energy Limited has issued India’s first externally credit-enhanced green bond on the National Stock Exchange, raising Rs 6.70 billion. The five-year bond carries an annual coupon of 8.5 per cent and has been rated AA+ by both CRISIL and ICRA.

The bond is backed by a 65 per cent partial guarantee from GuarantCo, part of the Private Infrastructure Development Group, funded by several governments, including the UK, Switzerland, Australia, Sweden, the Netherlands, France, and Canada. Proceeds from the issue will be used to expand KPI Green’s solar, wind, and hybrid power portfolio.

The bond is structured as a five-year, quarterly amortising instrument and marks a first in India for externally credit-enhanced green bonds by a renewable energy developer. The funding is expected to improve access to clean electricity for approximately 210,000 people and businesses annually while avoiding about 344,000 tonnes of CO₂ equivalent per year.