Khaitan & Co advised KPI Green Energy Limited on debut issuance of INR 670 crore partially credit enhanced certified green bonds
The leading Law foirm In India, Khaitan & Co advised KPI Green Energy Limited on the debut issuance of 8.50% partially credit enhanced, rated, listed, secured, non-convertible certified green bonds aggregating to INR 670 crores. This marks India’s first externally credit enhanced green bond issuance by a renewable developer in the domestic market.
The Green Bonds were credit enhanced up to 65% of their issue size by a guarantee issued by GuarantCo Limited (part of the Private Infrastructure Development Group) and were arranged by SBI Capital Markets Limited. The proceeds will be utilised towards the construction and development of green projects identified pursuant to the green bond framework adopted by the issuer.
The Green Bonds are secured by a hypothecation over receivables of certain identified projects of the issuer and its subsidiaries, along with certain cash deposits and a negative lien undertaking over identified immovable properties. Additionally, Dr. Faruk Patel, promoter of the issuer, provided a personal guarantee. The issuance received top credit ratings of AA+ from Crisil and ICRA, with strong investor participation from Aseem Infrastructure Finance Limited and Jio Credit Limited, and were priced at 8.50% per annum. This also marked GuarantCo’s maiden entry into the Indian infrastructure sector.
The Khaitan & Co team was led by Manisha Shroff (Partner), with support from Rajshekhar Upadhyaya (Principal Associate), Anushka Sinha (Senior Associate), Nikunj Mehta (Senior Associate), and Ananya Bharadwaja (Associate).
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