GuarantCo expects to mobilise c. USD 330 million in private capital for sustainable infrastructure in India from a series of trailblazing deals

  • Date written
  • November, 2025

GuarantCo, part of The Private Infrastructure Development Group (PIDG), following a series of trailblazing transactions in India in recent months, marked a strategic deepening of its engagement in the market by hosting an Expert Industry Forum in partnership with National Stock Exchange (NSE) India and NSE IX at the Trident BKC, Mumbai.

GuarantCo expects to mobilise c. USD 330 million in private capital for sustainable infrastructure in India from a series of trailblazing deals

The event brought together leading domestic institutional investors, as well as respected voices from industry and the policymaking ecosystem.

Following the successful completion of three credit enhanced bond transactions in India this year, GuarantCo is doubling down on its market engagement to increase institutional investor confidence in credit enhancement structures. The goal being to broaden market participation and accelerate capital mobilisation from domestic debt institutional investors for India’s sustainability transition.

Capital mobilised in India in 2025

GuarantCo expects to have mobilised over INR 2900 crore (c. USD 330 million) in private institutional capital through three landmark transactions closed in 2025, expanding access to sustainable finance and deepening the country’s capital markets.

The credit guarantees supported Vivriti Capital’s INR 2900 crore (USD 23.4 million) listed bond issuance, KPI Green Energy’s INR 670 crore (USD 80 million) green listed bond and Muthoot Capital’s INR 150 crore (USD 17 million) green listed bond. The credit enhancement enabled all three issuances to achieve AA+(CE) ratings, attract new classes of institutional investors and channel capital towards sustainability focused issuers. GuarantCo also worked with India’s leading credit rating agencies to establish a rating methodology for credit enhancement that will prove beneficial for the domestic capital market.

Collectively, these transactions are unlocking access to India’s domestic capital markets, while contributing to multiple UN Sustainable Development Goals (SDGs), including Affordable and Clean Energy (SDG 7), Decent Work and Economic Growth (SDG 8) and Climate Action (SDG 13).

The vision is to deepen India’s debt capital markets and unlock private investment for sustainable infrastructure development covering sectors such as renewable energy, e-mobility, water, agriculture and affordable housing.

Nishant Kumar, Managing Director, Asia Investments at GuarantCo, and Head of Coverage – Asia at PIDG said:

“We are working towards further strengthening our thematic bond transaction pipeline in 2026 and beyond, with a focus on mobilising private capital and reducing risk through credit enhancement, aligned with blended finance principles. We help create structures that are innovative, yet simple and can be replicated to develop the domestic capital market.

“Our approach of combining guarantee solutions with market education is intended to contribute to the country’s goal to achieve broader sustainability and climate finance goals. In sync with the PIDG Strategy 2030, GuarantCo is catalysing transformative impact by bridging capital gaps and driving market innovation in the infrastructure finance space in India. Our goal is to strengthen India’s financial ecosystem to support sustainable, long-term infrastructure growth, fulfilling sustainability priorities, which also ties well with the Viksit Bharat 2047 vision.”

NOTES TO EDITORS

About GuarantCo

GuarantCo mobilises private sector local currency investment for infrastructure projects and supports the development of financial markets in lower income countries across Africa and Asia. GuarantCo is part of the Private Infrastructure Development Group (PIDG) and is funded by the governments of the United Kingdom, Switzerland, Australia and Sweden, through the PIDG Trust, the Netherlands, through FMO and the PIDG Trust, and Global Affairs Canada plus France through a stand-by facility. GuarantCo is rated AA- by Fitch and A1 by Moody’s. Since 2005, GuarantCo has enabled USD 7.1 billion of total investment and USD 6.8 billion of private sector investment, giving 44.8 million people improved access to infrastructure and creating around 248,000 jobs. GuarantCo’s activities are managed by GuarantCo Management Company which is part of Cardano Development. www.guarantco.com

About PIDG

The Private Infrastructure Development Group (PIDG) is an innovative infrastructure project developer and investor which mobilises private investment in sustainable and inclusive infrastructure in sub-Saharan Africa and south and southeast Asia. PIDG investments promote socio-economic development within a just transition to net zero emissions, combat poverty and contribute to the Sustainable Development Goals (SDGs). PIDG delivers its ambition in line with its values of pioneering, partnership, safety, inclusivity, and urgency.

 

PIDG offers technical assistance for upstream, early-stage activities and concessional capital; invests in early-stage project development and project and corporate equity through its project development solution, InfraCo; its debt solution EAAIF (the Emerging Africa & Asia Infrastructure Fund) is one of the first and more successful blended debt funds in low-income markets; and its guarantees solution, GuarantCo, provides credit enhancement and local currency solutions to de-risk projects. PIDG also supports a growing portfolio of local credit enhancement facilities, which unlock domestic institutional capital for infrastructure financing.

 

Since 2002, PIDG has supported 258 infrastructure projects to financial close, which provided an estimated 232 million people with access to new or improved infrastructure. PIDG is funded by the governments of the United Kingdom, the Netherlands, Switzerland, Australia and Sweden, and Global Affairs Canada. www.pidg.org