KPI Green Energy Limited , a leading renewable energy developer based in Gujarat, has achieved a significant milestone in sustainable finance by successfully listing its inaugural green bond worth ₹670 crore on the National Stock Exchange of India (NSE). This landmark issuance marks India's first externally credit-enhanced green bond, setting a new benchmark for the country's renewable energy sector.

Key Features of the Green Bond

Innovative Credit Enhancement

The green bond's unique structure includes a 65% partial guarantee from GuarantCo, which is rated AA− by Fitch and A1 by Moody's. This external credit enhancement has enabled the bond to achieve AA+(CE) ratings from both CRISIL and ICRA, broadening its appeal to long-term domestic institutional investors such as infrastructure funds, mutual funds, and insurance companies.

Utilization of Funds

The proceeds from this green bond will be used to expand KPI Green Energy's portfolio of solar, wind, and hybrid projects across India. These new projects are expected to:

• Provide clean electricity to approximately 210,000 people and businesses annually
• Avoid more than 344,000 tonnes of carbon emissions each year

Company's Growth Trajectory

KPI Green Energy has already developed 1 GW of renewable capacity and is advancing towards an ambitious target of 10 GW by 2030. The company's current project pipeline exceeds 3 GW, positioning it as a frontrunner in India's renewable energy expansion.

Dr. Faruk G. Patel, Chairman and Managing Director of KPI Green Energy, stated, "By issuing India's first externally credit-enhanced green bond, KPI Green Energy reinforces its commitment to powering communities with sustainable energy while diversifying its financing routes. This milestone sets new benchmarks for ESG investment and supports the United Nation's Sustainable Development Goals."

Impact on Sustainable Finance

This transaction establishes a precedent for Indian corporates seeking sustainable capital through innovative credit enhancement mechanisms. It highlights the growing appetite among domestic investors for responsible financial products and positions KPI Green Energy to access new pools of liquidity in both domestic and international green finance markets.

Financial Outlook

According to the latest financial data, KPI Green Energy has demonstrated strong growth:

• Consolidated revenue increased by approximately 70% year-on-year
• Operating profit margin remained healthy at 32.50%
• The company's order book stood at about ₹4,800.00 crore, up from ₹3,279.00 crore

The successful listing of this green bond is expected to further strengthen the company's financial position and support its ambitious expansion plans in the renewable energy sector.

As India continues to prioritize its transition to clean energy, innovative financial instruments like KPI Green Energy's credit-enhanced green bond are likely to play a crucial role in mobilizing capital for sustainable infrastructure projects.

KPI Green Energy Limited , a prominent player in the renewable energy sector, has marked a significant milestone in India's green finance landscape. The company has successfully launched and listed the country's first externally credit-enhanced green bond issue, valued at Rs 670 crore, on the National Stock Exchange.

Bond Details and Credit Enhancement

The five-year bond carries an annual coupon rate of 8.5% and has received a robust AA+(CE) rating from both CRISIL and ICRA. This high rating is bolstered by a substantial 65% guarantee from GuarantCo, enhancing the bond's creditworthiness and appeal to investors.

Funding Clean Energy Projects

The proceeds from this innovative green bond issue are earmarked for funding solar, wind, and hybrid power projects in Gujarat. These projects are expected to have a significant impact on both the environment and local communities:

• Provide clean power access to approximately 2.10 lakh people annually
• Reduce carbon emissions by over 3.40 lakh tonnes each year

Capital Mobilization and Market Impact

This groundbreaking transaction is estimated to mobilize around $175 million in domestic capital, potentially catalyzing further green investments in India's rapidly growing renewable energy sector.

KPI Green Energy's Growth Trajectory

KPI Green Energy has demonstrated a strong commitment to expanding its renewable energy portfolio:

• Developed 1 GW of renewable capacity by FY26
• Over 3 GW of projects in the pipeline
• Ambitious target of reaching 10 GW capacity by 2030

Corporate Governance and Transparency

In line with its commitment to transparency and good corporate governance, KPI Green Energy recently announced its 17th Annual General Meeting (AGM) scheduled for September 26, 2025. The company has taken steps to ensure easy access to the Annual Report for FY 2024-25 and AGM notice for all shareholders, including those without registered email addresses.

This green bond issue by KPI Green Energy not only showcases the company's innovative approach to financing but also highlights the growing appetite for sustainable investment options in India's capital markets. As the country continues its push towards clean energy, such financial instruments are likely to play a crucial role in funding the transition to a low-carbon economy.