KPI Green Energy raises Rs 670 cr via 5-year externally credit-enhanced green bonds

KPI Green Energy

KPI Green Energy raised Rs 670 crore through India’s first externally credit-enhanced green bonds maturing in five years. The bonds got listed on the National Stock Exchange of India (NSE) on September 16.

The bonds bear a coupon rate of 8.5 percent per annum with a quarterly amortising profile and has been rated with ratings of AA+(CE) by CRISIL and ICRA according to the press release.

"Aseem Infrastructure has invested majority of the amount, followed by Jio Credit and SBICaps," Salim Suleman Yahoo, Chief Financial Officer of the company told Moneycontrol.

The issuance is backed by a 65 percent guarantee from GuarantCo, part of the Private Infrastructure Development Group (PIDG). "The remaining guarantee is based on internal books," said Faruk G. Patel, Chairman and Managing Director in an conversation with Moneycontrol.

Bond proceeds will be utilised to expand KPI Green’s solar, wind, and hybrid power portfolio, primarily across Gujarat. The projects financed are expected to provide clean electricity access to nearly 210,000 people and several businesses annually, while avoiding more than 344,000 tCO2e each year, a release said.

SBICaps were the arrangers for the issue.

Patel added that the company may go for the dollar bonds and may raise it after 2027. He did not mention any quantum of the amount that the company will raise through dollar bonds.