KPI Green Energy Launches India’s First Externally Credit-Enhanced Green Bond..
Historic Milestone in Sustainable Finance Aims to Accelerate Clean Energy Transition
AMIT ALHAT, Editor, TIN24 (THE INDIA NEWS 24)
Mumbai, September 18, 2025
In a groundbreaking move for India’s renewable energy sector, KPI Green Energy Ltd. has issued the country’s first externally credit-enhanced Green Bond, marking a significant step toward sustainable financing and environmental responsibility. The announcement, made yesterday on September 17, 2025, underscores the company’s commitment to transitioning away from fossil fuels amid rising energy demands in India’s expanding economy.
The ₹670 crore Green Bond, issued at a coupon rate of 8.50% per annum with a 5-year quarterly amortizing profile, is backed by a 65% guarantee from GuarantCo, a member of the Private Infrastructure Development Group (PIDG). GuarantCo, funded by governments including the UK, Switzerland, Australia, Sweden, the Netherlands (via FMO), France, and Global Affairs Canada, holds strong credit ratings of AA− from Fitch and A1 from Moody’s. This external enhancement has enabled KPI Green’s bond to secure an AA+ (CE) rating from leading agencies CRISIL and ICRA, setting a new benchmark for renewable developers in India.
Unlike conventional bonds, Green Bonds are specifically earmarked for environmentally friendly projects. The proceeds from this issuance will fund the expansion of KPI Green’s solar, wind, and hybrid power portfolio across the nation. According to the company, the initiative is expected to provide clean electricity to approximately 210,000 people and numerous businesses annually, while avoiding more than 344,000 tonnes of CO₂ equivalent emissions each year.
This development is poised to deepen India’s bond markets, a key focus for stakeholders in the financial ecosystem. By introducing credit enhancements, it paves the way for other corporations to tap into new liquidity sources, thereby speeding up the growth of renewable energy infrastructure.
KPI Green Energy, which began its renewable journey in 2008, has already achieved notable milestones. By early FY 2025–26, the company has installed 1 GW of solar and hybrid plants, with over 3 GW of projects currently in the pipeline. To date, it has saved 2.1 million metric tons of CO₂ emissions. As part of the broader KP Group, KPI Green has contributed to energizing 6 GW of projects—equivalent to the environmental impact of planting 260 million trees. The company has set an ambitious target of reaching 10 GW by 2030, positioning these Green Bonds as vital tools in building a sustainable future.
Dr. Faruk G. Patel, Chairman and Managing Director of KPI Green Energy, emphasized the broader implications: “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.”
As India pushes toward its net-zero goals, initiatives like this highlight the role of innovative financing in balancing economic growth with ecological preservation. KPI Green Energy continues to lead the charge in powering progress responsibly, inspiring a wave of green investments across the industry.
Author: The India News 24
TIN24 (The India News 24) The India News 24 (TIN24) is a Mumbai-based news Digital Media focusing on breaking news, local and regional issues in India, with content primarily in Marathi. It was established with an X (Twitter) presence since July 2022. Owner & News Editor: Amit Alhat Education: BA in Mass Communication Journalism (Graduate) Experience: 12 years in journalism Platforms: - Website: https://theindianews24.in - X (Twitter): https://x.com/the_indianews24 - YouTube: https://www.youtube.com/@theindianews247 - Instagram: https://www.instagram.com/theindianews_24
