PIDG’s credit‑guarantee unit GuarantCo supported Vivriti Capital’s ₹2.9 billion listed bond, KPI Green Energy’s ₹6.7 billion green bond, and Muthoot Capital’s ₹1.5 billion green bond this year.
Blended‑finance pioneer Private Infrastructure Development Group (PIDG) is expanding its India portfolio in 2025, focusing on mobilising domestic institutional debt for the country’s sustainability transition. The push follows three credit‑enhanced bond transactions completed by London‑headquartered PIDG’s credit‑guarantee unit, GuarantCo, in 2025, mobilising over ₹29 billion ($330 million) in private institutional capital and deepening India’s capital markets.
Nishant Kumar, Managing Director, Asia Investments at GuarantCo and Head of Coverage for Asia at PIDG, said, “We are working towards further strengthening our thematic bond transaction pipeline in 2026 and beyond, with a focus on mobilising private capital and reducing risk through credit enhancement, aligned with blended finance principles. We help create structures that are innovative, yet simple and can be replicated to develop the domestic capital market.”
Blended financing involves using public or concessional funds to reduce risk and attract larger private investment into projects.
GuarantCo’s credit guarantees supported Vivriti Capital’s ₹2.9 billion (approximately $34.9 million) listed bond issuance, KPI Green Energy’s ₹6.7 billion ($80 million) green bond, and Muthoot Capital’s ₹1.5 billion (approximately $18 million) green bond. All three achieved AA+(CE) ratings, attracted new classes of institutional investors, and channelled capital towards sustainability‑focused issuers.
GuarantCo also worked with India’s leading credit rating agencies to establish a methodology for credit enhancement, expected to benefit the domestic capital market. Collectively, these transactions contribute to multiple UN Sustainable Development Goals (SDGs), including Affordable and Clean Energy (SDG 7), Decent Work and Economic Growth (SDG 8), and Climate Action (SDG 13).
Mobilising Private Capital
PIDG plans to deepen India’s debt capital markets and unlock private investment across renewable energy, e‑mobility, water, agriculture, and affordable housing to support the country’s goal to achieve broader sustainability and climate finance goals.
“In sync with the PIDG Strategy 2030, GuarantCo is catalysing transformative impact by bridging capital gaps and driving market innovation in the infrastructure finance space in India. Our goal is to strengthen India’s financial ecosystem to support sustainable, long‑term infrastructure growth, fulfilling sustainability priorities, which also ties well with the Viksit Bharat 2047 vision,” added Kumar.
PIDG reports that projects backed by it have provided over 232 million people with access to new or improved infrastructure and supported the creation of more than 258,000 long‑term jobs. In 2024, 64 per cent of total investment commitments were classified as climate finance, while 72 per cent contributed to gender equality outcomes.
Emerging and Developing Market Economies (EDMEs) currently account for around 75 per cent of global emissions and include many of the world’s most climate‑vulnerable regions, including Asia. Without coordinated strategies to mitigate risks, climate‑related events could threaten the stability of returns and asset values globally, PIDG notes.
PIDG is funded by the governments of the UK, the Netherlands, Switzerland, Australia and Sweden, and Canada’s foreign ministry, Global Affairs Canada.