According to a business release, this is a major step forward for sustainable financing in India’s renewable energy industry.
KPI Green Energy, a Gujarat-based developer and operator of renewable energy, said Thursday that its first green bond, valued at Rs 670 crore, has been successfully listed on the Indian National Stock Exchange.
India’s First Green Bond
According to a business release, this is a major step forward for sustainable financing in India’s renewable energy industry.
The five-year bond has a quarterly amortization profile and an annual coupon rate of 8.50%.
GuarantCo, a division of the Private Infrastructure Development Group, which receives funding from the governments of the UK, Switzerland, Australia, Sweden, the Netherlands, Canada, and France, provides a 65% partial guarantee in support of it.
GuarantCo has an A1 Moody’s rating and an AA− rating from Fitch.
Boosting India’s Renewable Investment
Long-term domestic institutions including mutual funds, insurance firms, and infrastructure funds are now part of the investor base thanks to the external credit enhancement that allowed for an AA+(CE) rating from both CRISIL and ICRA.
According to the announcement, KPI Green Energy would utilize the bond proceeds to increase the number of solar, wind, and hybrid projects it has in India.
According to estimates, the new projects would save more than 344,000 tons of carbon emissions yearly and provide clean power to almost 210,000 households and companies.
In addition to quickening India’s shift to sustainable energy, this action raises Rs 670 crore in institutional domestic investment outside of traditional banking channels.
KPI Green Energy Advances 10 GW Goal
KPI Green Energy is moving closer to its goal of 10 GW of renewable power by 2030, having already built 1 GW.
The corporation is one of the leaders in the nation’s growth of renewable energy thanks to its consistent pipeline, which exceeds 3 GW.
This transaction demonstrates the increasing demand for responsible financial products among local investors and sets a precedent for Indian corporations looking for sustainable funding via creative credit enhancement strategies, the statement said.
In addition to preparing the business for future fundraising in the local and international green finance markets, it puts KPI Green Energy in a position to tap new liquidity pools.