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KPI Green Plans One Billion Dollar InvIT For Renewables
POWER & RENEWABLE ENERGY

KPI Green Plans One Billion Dollar InvIT For Renewables

KPI Green Energy is planning to launch an infrastructure investment trust to raise one billion (bn) dollars as part of a push to expand renewable energy capacity in India, Reuters reported. The company intends to house operational solar, wind and hybrid assets within the trust to attract long-term capital from institutional and retail investors. The proposed vehicle is described as an InvIT regulated in the Indian market and is expected to give investors access to income-generating power projects.

The trust will target an initial raise of Rs 80 to 100 billion (bn), the company said through its chairman, and the InvIT is planned for launch around the end of the financial year 2027-28. KPI Green is pursuing the structure to broaden its capital base amid a national drive to scale clean power. India is seeking to build 500 gigawatt (GW) of non-fossil electricity capacity before the end of the decade, a national target linked to climate commitments.

The proposed InvIT is set to hold between one and a half and two gigawatt (GW) of operational capacity drawn from existing solar, wind and hybrid projects, some of which benefit from long-term power purchase agreements with state-backed utilities, including Gujarat Urja Vikas Nigam and SJVN. The group previously tapped debt markets, raising Rs 6.7 billion (bn) via a green bond that carried a 65 per cent guarantee from GuarantCo, part of the PIDG network. The structure is framed to provide long-dated cash flows that match investor demand for predictable returns.

InvITs allow developers to monetise completed projects and recycle capital while providing investors with steady cash returns, since regulations require distribution of at least 90 per cent of net cash flows to unit holders. As of March 2026, there were 28 registered InvITs in India managing assets worth more than Rs 7 trillion (tn) with total market capitalisation around Rs 2.60 trillion (tn). KPI Green's move reflects a wider trend towards asset monetisation in the renewable sector and the company expects the structure to appeal to yield seeking investors.

KPI Green Energy is planning to launch an infrastructure investment trust to raise one billion (bn) dollars as part of a push to expand renewable energy capacity in India, Reuters reported. The company intends to house operational solar, wind and hybrid assets within the trust to attract long-term capital from institutional and retail investors. The proposed vehicle is described as an InvIT regulated in the Indian market and is expected to give investors access to income-generating power projects. The trust will target an initial raise of Rs 80 to 100 billion (bn), the company said through its chairman, and the InvIT is planned for launch around the end of the financial year 2027-28. KPI Green is pursuing the structure to broaden its capital base amid a national drive to scale clean power. India is seeking to build 500 gigawatt (GW) of non-fossil electricity capacity before the end of the decade, a national target linked to climate commitments. The proposed InvIT is set to hold between one and a half and two gigawatt (GW) of operational capacity drawn from existing solar, wind and hybrid projects, some of which benefit from long-term power purchase agreements with state-backed utilities, including Gujarat Urja Vikas Nigam and SJVN. The group previously tapped debt markets, raising Rs 6.7 billion (bn) via a green bond that carried a 65 per cent guarantee from GuarantCo, part of the PIDG network. The structure is framed to provide long-dated cash flows that match investor demand for predictable returns. InvITs allow developers to monetise completed projects and recycle capital while providing investors with steady cash returns, since regulations require distribution of at least 90 per cent of net cash flows to unit holders. As of March 2026, there were 28 registered InvITs in India managing assets worth more than Rs 7 trillion (tn) with total market capitalisation around Rs 2.60 trillion (tn). KPI Green's move reflects a wider trend towards asset monetisation in the renewable sector and the company expects the structure to appeal to yield seeking investors.

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