India’s KPI Green Energy plans to launch an infrastructure investment trust (InvIT) backed by renewable energy assets to raise up to $1 billion, a top executive told Reuters.
The trust will target an initial raise of 80 billion to 100 billion rupees ($838.16 million-$1.05 billion), Faruk Patel, chairman and managing director of parent company KP Group said on Monday, adding that the InvIT is planned to be launched around the end of FY27-28.
Based in the western state of Gujarat, KPI Green Energy is turning to InvITs to broaden its capital base as India races to build 500 gigawatts of clean energy capacity by the end of the decade.
KPI Green tapped the debt market last year, raising 6.7 billion rupees via a green bond backed by a 65% guarantee from GuarantCo, a Private Infrastructure Development Group (PIDG) company.
The proposed InvIT will hold 1.5-2 GW of operational solar, wind, and hybrid power projects. Some of these assets have long-term power supply agreements with state-backed utilities, including Gujarat Urja Vikas Nigam and SJVN, Patel said.
“We are engaged with multiple investment managers to finalize the structure, optimal InvIT size, and unit pricing framework,” Patel said.
“Early-stage responses from prospective investment managers and institutional investors have been very encouraging.”
InvITs are pooled investment instruments, similar to mutual funds, that hold revenue-generating infrastructure assets and distribute the bulk of their cash flows to unit holders as dividends.
There are 28 registered InvITs in India, as of March 2026, managing assets worth more than 7 trillion rupees, with a total market capitalization of 2.60 trillion rupees, according to the Bharat InvITs Association.
($1 = 95.4475 Indian rupees)
Reuters
