KPI Green Energy Secures $363 Million Loan and Raises ₹670 Crore Green Bond
Published · 3 min read
KPI Green Energy takes big steps in renewable energy financing with support from State Bank of India and global investors. KPI Green Energy will raise ₹3,200 crore ($363 million) through a loan from the State Bank of India. The loan will run for 20 years at an interest rate of 8.45%. Funds will be given in parts over the next 18 months.
This comes as India is working to reach 500 gigawatts of clean energy capacity by 2030. The deal is one of the largest in the sector this year.
Company’s Expansion Goals
KPI Green Energy develops and manages solar, wind, and hybrid power projects. The company aims to finish all projects under its Independent Power Producer (IPP) business by 2027. Once complete, these projects will generate about ₹10 billion in revenue.
- Focus on large hybrid projects.
- Complete all IPP projects by 2027.
- Reach 10 GW capacity by 2030.
Historic Green Bond Launch
Along with the SBI loan, KPI Green Energy also launched India’s first externally credit-enhanced Green Bond. The company raised ₹670 crore with a coupon rate of 8.5% per year. The bond will last for 5 years and was listed on the National Stock Exchange on September 16, 2025.
A 65% guarantee from GuarantCo, part of the Private Infrastructure Development Group, helped improve the bond’s rating to AA+ by CRISIL and ICRA. Without the guarantee, the company would have paid a much higher rate of about 14–15%.
Investor Breakdown
| Investor | Share of Bonds |
| Aseem Infrastructure Finance | Majority |
| Jio Finance | Minority |
| SBI Capital Markets | Minority |
“We have borrowed this planet from our future generations. It is our duty to leave behind clean air and a healthier world.” – Dr. Faruk G. Patel, CMD
Impact of the Projects
Funds from the green bond will expand projects mainly in Gujarat. The projects will give clean power to about 210,000 people and many businesses each year. They will also help avoid more than 344,000 tons of carbon emissions annually.
KPI Green Energy has already installed 1 GW of solar and hybrid plants. It has more than 3 GW of projects in hand and across its group has energized about 6 GW. These efforts have saved the same amount of carbon as planting 260 million trees.
Why This Matters
India added a record 43 GW of renewable energy capacity in 2025. Deals like this show how financing is key for growth. The SBI loan and the new bond together mark a turning point for clean energy financing in India.
- Government targets support such large-scale projects.
- Private and global investors are showing trust in Indian clean energy.
- Innovative financing models make renewable energy more affordable.
Future Plans
KPI Green Energy is also looking at raising dollar bonds after 2027. This will help it reach international investors and fund more global expansion.
The company’s long-term vision is clear: expand capacity, cut carbon, and create clean power for millions. It aims to reach 10 GW by 2030, and every project brings India closer to that goal.
Key Points at a Glance
- Loan: ₹3,200 crore ($363M) from SBI, 20 years, 8.45% rate.
- Green Bond: ₹670 crore, 5 years, 8.5% coupon, AA+ rating.
- Impact: 210,000 people powered, 344,000 tons of CO₂ avoided yearly.
- Vision: 10 GW renewable capacity by 2030.
