KPI Green Energy Limited has achieved a significant milestone in its renewable energy expansion plans, securing substantial financial backing from India's largest public sector bank. The company has obtained a sanction of ₹3,200 crore from the State Bank of India (SBI) to fund its ambitious solar and hybrid independent power producer (IPP) projects in Gujarat, totaling over 1 GWp (Gigawatt peak) capacity.

Project Details

The financing package, which includes both fund-based and non-fund based facilities, will support two major renewable energy projects:

1. A 250 MW (AC) / 350 MWp (DC) Solar Power Project
2. A 370 MW Hybrid Power Project, comprising a 557 MWp solar component and a 124.20 MW wind component

Both projects are strategically located in the Bharuch and Surendranagar districts of Gujarat and are backed by 25-year long-term Power Purchase Agreements (PPAs) with Gujarat Urja Vikas Nigam Limited (GUVNL).

Financial Structure and Strategic Importance

The projects will be financed with a 75:25 debt-equity ratio, demonstrating SBI's confidence in KPI Green Energy's technical expertise, execution track record, and financial strength. The sanctioned funds will be used for:

• Project cost financing
• Reimbursement of incurred expenditure
• Related development expenses

Dr. Faruk Patel, Chairman & Managing Director of KPI Green Energy Limited, commented on the development: "This landmark sanction from the State Bank of India is a strong validation of KPI Green Energy's capabilities and long-term vision. Financing is a critical enabler of large-scale infrastructure, and this partnership empowers us to accelerate capacity addition under India's renewable transition."

Environmental Impact and Future Outlook

Upon commissioning, these projects are expected to make a substantial contribution to KP Group's ambitious target of achieving 10 GW capacity by 2030. The environmental impact is equally significant, with the projects projected to:

• Eliminate over 1.5 million tonnes of CO₂ emissions annually
• Equivalent to planting more than 65 million trees each year

The successful completion of these projects will not only strengthen KPI Green Energy's recurring revenue streams and profitability but also reinforce its position as one of India's fastest-growing renewable energy companies.

About KP Group

Founded in 1994 by Dr. Faruk G. Patel, KP Group has evolved into a multi-faceted conglomerate with core expertise in renewable energy, infrastructure, and innovation. The group has been at the forefront of India's green energy mission, spearheading transformative projects in wind and solar energy over the past three decades.

This latest financial backing from SBI underscores KPI Green Energy's commitment to powering India's clean energy transition and sets new benchmarks in the renewable energy sector.

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.