- Date written
- September, 2025
- Contact for guarantco
- Alison Hicks
- Senior Communications Manager
- +44 (0)738 5551967
- alison.hicks@pidg.org
- Contact for PIDG
- Cecilie Sorhus
- Chief of Staff and Head of Communications
- +44 (0)7917 302724
- cecilie.sorhus@pidg.org
- Share
GuarantCo, part of the Private Infrastructure Development Group (PIDG), has provided a partial credit guarantee (65 per cent) for an up to INR 6.7 billion (c. USD 76.5 million) first green bond issuance by KPI Green Energy, a publicly listed (BSE: 542323, NSE: KPIGREEN) renewable energy developer and operator in India.
This is the first partially guaranteed externally credit enhanced domestic green bond issuance by a renewable developer in a market typically dominated by larger firms, both from the private sector and state-backed entities.
The proceeds of the bond will help KPI Green to expand its solar, wind and hybrid power portfolio capacity across the states of Gujarat. The project will provide c. 210,000 people and several businesses with improved access to clean electricity, while being forecast to avoid more than 344,000 tCO2e.
This transaction will mobilise c. USD 175 million of domestic institutional capital (e.g. infrastructure debt funds, mutual funds, insurance) into renewables. The bonds will help KPI Green diversify its funding base beyond its existing debt providers, which are mostly banks.
The project will contribute to the UN’s Sustainable Development Goals 7 (affordable and clean energy), 8 (decent work and economic growth) and 13 (climate action).
GuarantCo’s guarantee has helped the five-year bond to achieve a credit rating of AA+(CE) by both CRISIL and ICRA, enabling wider investor participation in such bonds. A four-notch rating upgrade underscores the strength of GuarantCo’s guarantee and credit risk management. The bonds will be listed at the National Stock Exchange (NSE).
KPI Green is also expected to benefit from a PIDG Technical Assistance grant for this transaction.
Nishant Kumar, Managing Director of Asia Investments at GuarantCo and Head of Coverage – Asia at PIDG, said:
“We are delighted to have closed this transaction with KPI Green Energy that will support systematic growth in India’s debt capital markets. This transaction is also pioneering as India’s first credit-enhanced green bond, which we hope will provide inspiration to other firms in this market segment to stimulate market transformation. India needs to add new renewable energy capacity of 300GW to achieve an installed generation capacity of 500GW from renewable sources by 2030 and domestic debt capital market needs to play an integral role in achieving this goal.
“GuarantCo, part of the Private Infrastructure Development Group, is at the forefront of market innovation and creating replicable structures. We hope this will help kick-start unlocking the vast domestic institutional capital for financing sustainable infrastructure in India.”
Dr Faruk G Patel – Chairman at KPI Green Energy, said:
“KPI Green Energy has issued its first green bond of up to ₹6.7 bn—the first externally credit-enhanced by a renewable developer in India—backed by a 65% GuarantCo (PIDG) guarantee, rated AA+ by CRISIL and ICRA, and listed on NSE. Proceeds will expand our solar, wind and hybrid projects in Gujarat, improving clean power for ~210,000 people, avoiding >344,000 tCO₂e, and mobilising ~USD 175m of domestic capital while diversifying our funding and paving the way for ESG and potential USD issuances. This milestone advances SDGs 7, 8 and 13; we thank our partners and investors.