50 | September 2025 | www.industrialoutlook.in
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UEST RTICLE
The urgency to fight climate
change has never been greater. With
India's fast-growing economy and
rising energy needs, we cannot rely
only on fossil fuels. Clean solutions
solar, wind, and hybrid power are the
way forward to secure both growth
and sustainability.
Yet, large-scale renewable projects
need equally strong and innovative
financing. This is where Green
Bonds make the difference. Unlike
traditional bonds, they are dedicated
exclusively to sustainable initiatives
delivering attractive investment op-
tions for investors while driving
positive environmental impact.
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 mile-
stone in renewable energy. Backed
by a 65% guarantee from Guarant-
Co, a part of Private Infrastructure
Development Group, funded by
governments of the UK, Switzer-
land, Australia, Sweden, the Nether-
lands via FMO, France, and Global
Affairs
Canada),
this
marks
India's
first externally credit-en-
hanced Green Bond by a renewable
developer. GuarantCo is rated AA
(Fitch) and A1 (Moody's), enabling
our bond to achieve AA+ (CE) from
top rating 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
im-
proved 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 stake-
holders. 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 renew-
able 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, equiv-
alent to planting 260 million trees.
With a target of 10 GW by 2030,
these Green Bonds are not just finan-
cial instruments they are enablers of
a greener tomorrow.
As our 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 Ltd.: India's first
externally credit-enhanced Green Bond