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.

KPI Green Energy Limited has announced a groundbreaking partnership with AhES Co. Ltd. of South Korea and GH2 Solar Ltd. of India to establish a green ammonia production facility in India. The plant is set to have a capacity of 100,000 tonnes per annum (TPA), marking a significant step towards sustainable energy solutions in the country.

Strategic Collaboration

The collaboration, formalized through a Memorandum of Understanding (MoU), involves KPI Green Hydrogen & Ammonia Private Limited (KPI GH), a subsidiary of KP Group, as the primary operator of the facility. AhES Co. Ltd. and GH2 Solar Ltd. will provide technical and strategic support, including arranging offtake agreements for the green ammonia produced.

Key Highlights of the Partnership

• Production Capacity: The facility will produce 100,000 TPA of green ammonia.
• Market Focus: The green ammonia will target markets in South Korea, Japan, and other international destinations.
• Offtake Arrangements: AhES will serve as one of the primary offtakers for the produced green ammonia.
• Renewable Energy Integration: The project will leverage renewable energy and infrastructure solutions supplied by KP Group entities.
• Strategic Duration: The partnership is set for a 15-year collaboration, underlining a long-term commitment to sustainable energy.

Technological Expertise

AhES Co. Ltd., known for its expertise in hydrogen electrolyzer manufacturing and Power-to-Gas solutions, brings cutting-edge technology to the project. GH2 Solar Ltd., specializing in solar infrastructure and green hydrogen production, contributes local expertise and project execution capabilities.

Alignment with National Goals

Dr. Faruk Patel, Chairman & Managing Director of KP Group, stated, "This partnership exemplifies KP Group's vision to lead clean energy innovation in India and abroad." The initiative aligns with India's National Green Hydrogen Mission objectives and supports the country's goals for carbon reduction and renewable energy growth.

KP Group's Green Energy Portfolio

KP Group brings substantial experience to the project, with over 30 years in the renewable energy sector. The group currently boasts an installed power capacity of 1.9+ GW and has 3.9+ GW under development, showcasing its significant presence in the green energy transition.

This strategic partnership not only positions KPI Green Energy at the forefront of green ammonia production but also reinforces India's commitment to sustainable and clean energy solutions on a global scale.