KPIGREENNSEKPI Green Energy LimitedHighPositive
Announced Tue, 17 Mar · 14:28 IST

KPI Green Energy Limited has informed the Exchange regarding 'Press Release titled KPI Green Energy Limited secures sanction of Rs. 979 crore (Term Loan and Bank Guarantee Facility) from Canara Bank for its 150 MW GUVNL Wind Project as Independent Power Producer (IPP)'.

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AI summary

KPI Green Energy has received a sanction of ₹979 crore from Canara Bank — comprising a ₹931 crore rupee term loan and a ₹48 crore bank guarantee facility — to fund its 150 MW wind power project in Gujarat. The project, located in Bharuch and Bhavnagar districts, is backed by 25-year Power Purchase Agreements with GUVNL. The total project cost is ₹1,241.68 crore, funded through a 75:25 debt-equity ratio. The loan has a long door-to-door tenor of about 20 years, with a 1-year moratorium, reflecting strong public-sector bank confidence in the company's renewable energy execution capabilities. This adds to the parent KP Group's broader ambition of reaching 10 GW of renewable energy capacity by 2030.

Likely market impact

Positive for shareholders — the long-tenor debt funding de-risks the 150 MW project's execution and locks in stable 25-year annuity revenues from GUVNL, supporting future earnings visibility. The sanction from a leading public-sector bank signals strong lender confidence and may boost investor sentiment on the company's growth pipeline.