KPI Green Energy to raise Rs 3200 crore from SBI, top executives say

Core Viewpoint - KPI Green Energy is raising 32 billion rupees ($363.39 million) through a loan from the State Bank of India to expand its renewable power production capacity, aligning with the Indian government's goal of achieving 500 gigawatts of non-fossil capacity by 2030, marking it as one of the larger deals in the sector's recent history [1][6]. Company Overview - KPI Green Energy specializes in developing, building, and managing renewable power facilities, focusing on solar, wind, and hybrid power solutions [1][6]. - The company aims to complete all its projects in hand in the Independent Power Producer (IPP) segment by 2027, which is expected to generate approximately 10 billion rupees in revenue [2][6]. Financial Details - The loan is structured as a 20-year facility with an interest rate of 8.45%, to be disbursed in a staggered manner over the next 1.5 years [2][6]. - Additionally, KPI Green Energy issued its first green bond, planning to raise 6.7 billion rupees at a coupon rate of 8.5% per annum, which was externally credit-enhanced with a 65% guarantee from GuarantCo [5][6]. - The guarantee improved the bond's credit rating from A+ to AA+ by CRISIL and ICRA, allowing the company to avoid a higher coupon rate of 14-15% that would have been necessary without the guarantee [5][6]. Market Context - The loan approval and bond issuance occur within the context of India's significant push towards green energy, highlighting the growing investment opportunities in the renewable energy sector [1][6].