KPI Green Energy to Raise $363 Million Loan from SBI and Issue ₹670 Crore Green Bond

KPI Green Energy, a prominent player in India's renewable sector, is set to raise ₹3,200 crore ($363.39 million) through a long-term loan from the State Bank of India to expand its clean energy infrastructure, as per the Reuters report. 

In addition, the company will issue a ₹670 crore green bond to support sustainable growth, marking a significant step in India's push toward 500 GW of non-fossil fuel capacity by 2030.

KPI Green Energy to Raise ₹3,200 Crore via 20-Year SBI Loan

The ₹3,200 crore loan, approved by SBI, is likely to be disbursed over the next 1.5 years and carries an interest rate of 8.45%, CFO Sahil Yahoo told Reuters. 

This financing will fuel KPI's expansion under its Independent Power Producer (IPP) vertical. According to Chairman and MD Dr. Faruk G. Patel, the company expects all current IPP projects to be completed by 2027, generating ₹1,000 crore in revenue annually.

₹670 Crore Green Bond Issued with Credit Enhancement

KPI Green Energy has also launched its first rupee-denominated green bond worth ₹670 crore. The 5-year bond offers an 8.5% annual coupon and includes a 65% guarantee from GuarantCo, part of the Private Infrastructure Development Group (PIDG). This external guarantee elevated the credit rating from A+ to AA+ by CRISIL and ICRA, significantly lowering the company’s borrowing cost.

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Strong Institutional Backing for Green Bond Issue

Aseem Infrastructure Finance subscribed to a majority portion of the green bond, while Jio Finance and SBI Capital Markets took the remaining allotment. SBI Capital Markets also served as the sole arranger for the bond issue, showcasing strong institutional support for clean energy funding in India.

Conclusion

With the planned ₹3,200 crore loan from SBI and the successful issue of ₹670 crore green bonds, KPI Green Energy is advancing its goal of expanding renewable energy assets. These strategic moves align with India’s broader decarbonisation vision and highlight the growing role of institutional finance in accelerating the clean energy transition.

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