Clean Energy Bonds

KPI Green Energy Ltd has issued India’s first externally credit-enhanced Green Bond, raising ₹670 crore to fund new solar, wind and hybrid power projects. The bond carries an 8.5% coupon rate per annum and follows a five-year amortizing repayment structure. It is backed by a 65% guarantee from GuarantCo—an international infrastructure finance firm supported by the governments of the UK, Australia, Switzerland, the Netherlands (via FMO), France, Sweden and Canada—which enabled KPI Green to secure an AA+ (CE) rating from CRISIL and ICRA. Proceeds from the issuance are expected to supply clean electricity to over 200,000 individuals and businesses and to avoid approximately 344,000 tonnes of CO₂ emissions annually. A bell-ringing ceremony at the National Stock Exchange marked the launch, attended by Dr. Faruk G. Patel, Chairman and Managing Director of KPI Green Energy, and Ashish Chauhan, MD & CEO of the NSE.

Founded in 2008 and based in Gujarat, KPI Green Energy has steadily expanded its renewable portfolio, reaching 1 GW of installed solar and hybrid capacity by early FY 2025–26 and maintaining over 3 GW of projects in its development pipeline. The company reports that its operations have prevented 2.1 million metric tonnes of CO₂ emissions to date, while the broader KPI Group has delivered 6 GW of clean-energy projects—an impact likened to planting 260 million trees. With this Green Bond setting a precedent for externally guaranteed sustainable finance in India, KPI Green Energy has positioned itself to accelerate toward its goal of achieving 10 GW of renewable capacity by 2030 and to catalyze similar initiatives across the country’s clean-energy sector.

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