Surat: KPI Green Energy Ltd, a leading renewable energy player based in Surat, Gujarat, has announced the launch of India’s first green bond worth Rs.670 crore on the National Stock Exchange. The bond comes with a five-year tenure and an 8.5% interest rate, payable quarterly.
The bond is supported by a partial 65% guarantee from GuarantCo, a part of the Private Infrastructure Development Group, funded by the governments of the UK, Switzerland, Sweden, Netherlands, Australia, France and Canada. GuarantCo is rated AA- by Fitch and A1 by Moody’s. In India, CRISIL and ICRA have rated the bond AA+, broadening the investment base to include infrastructure funds, insurance companies and mutual funds.
KPI Green Energy aims to utilise the bond proceeds to expand the company’s renewable energy portfolio, including solar, wind, and hybrid projects, across India. Aiming to avoid more than 344,000 tonnes of carbon emissions, these projects aim to bring clean electricity to more than 200,000 homes and businesses every year.
“By issuing India’s first externally credit-enhanced green bond, KPI Green Energy reinforces its commitment to powering communities with sustainable energy while diversifying its financing routes. This milestone sets new benchmarks for ESG investment and supports the United Nation’s Sustainable Development Goals for SDG 7 (Clean Energy), SDG 8 (Decent Work & Growth), and SDG 13 (Climate Action),” Dr Faruk G. Patel, Chairman and Managing Director, said in a press release to the bourses.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers should conduct their own research or consult with a qualified financial advisor before making any investment decisions.
