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.

KPI Green Energy Limited , a prominent player in the renewable energy sector, has successfully raised INR 670 crore through the issuance of green bonds, marking a significant milestone in its financial strategy and commitment to sustainable energy projects.

Bond Details

The company allotted 67,000 secured, listed, rated, senior, redeemable, transferable, non-convertible certified "green" bonds through a private placement. These bonds carry an annual coupon rate of 8.50% and have a tenure of 60 months, set to mature on September 11, 2030.

Listing and Security

The green bonds are listed on the National Stock Exchange's Negotiated Trade Reporting Platform under the New Debt Market Segment. To secure the issue, KPI Green Energy has provided first-ranking charges over its power projects, totaling 110.7 MW. Additionally, the security package includes projects from its subsidiaries:

• 24.7 MW from KPIG Energia Private Limited
• 10 MW from KPARK Sunbeat Private Limited

Axis Trustee Services Limited has been appointed as the security trustee for this bond issuance.

Repayment Structure

The bonds follow a structured quarterly repayment schedule, encompassing both interest and principal components over the 5-year period. This approach ensures a steady cash flow for investors while managing the company's debt obligations efficiently.

Security Details

The bond issue is backed by a comprehensive security package, including:

1. First-ranking exclusive fixed charges over specified fixed assets of the company and its subsidiaries.
2. Exclusive floating charges over receivables and cash inflows from the pledged assets.
3. First-ranking exclusive charges over debt service reserves and security deposits.
4. A non-disposal undertaking by the company over unencumbered land housing a 109.2 MW revenue-generating independent power producer project.
5. First-ranking exclusive charges over dedicated escrow accounts of the company and its subsidiaries involved in the issue.

Implications for KPI Green Energy

This successful green bond issuance demonstrates KPI Green Energy's strong market position and investor confidence in its sustainable energy projects. The funds raised are likely to bolster the company's capacity to expand its renewable energy portfolio and contribute to India's growing clean energy sector.

The use of green bonds aligns with global trends in sustainable finance and underscores KPI Green Energy's commitment to environmentally responsible business practices. As the renewable energy sector continues to gain momentum in India, this financial move positions the company favorably for future growth and project development.

This table illustrates the repayment schedule for a single debenture with a face value of INR 100,000, showcasing key milestones in the bond's lifecycle.