GuarantCo partially credit guaranteed (65 per cent) an up to INR 6.7 billion (c. USD 76.5 million) first green bond issuance by KPI Green Energy, a publicly listed 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.

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.

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).

The proceeds of the bond will help KPI Green to expand its solar, wind and hybrid power portfolio capacity across the states of Gujarat.

For context, India needs to add new renewable energy capacity of 300GW to achieve its targeted installed generation capacity of 500GW from renewable sources by 2030.

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.

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).