Global credit guarantor bets big on India with $500 million plan
GuarantCo, the credit-guarantee unit of the Private Infrastructure Development Group (PIDG), plans to significantly expand its footprint in India, aiming to make the country its largest Asian market within three years.
The U.K.-backed development finance institution, which mobilizes capital for sustainable infrastructure, specializes in partial credit guarantees that help lower-rated firms access institutional funding and improve their credit ratings, News.Az reports, citing Reuters.
Nishant Kumar, GuarantCo’s managing director for Asia investments, said the firm expects to provide guarantees worth $500 million in India’s climate and capital market deals by 2027. “Between 2025 and 2027, we would have deployed close to $500 million in guarantee capacity in India, including current guarantees,” Kumar said.
India’s push to strengthen its credit enhancement ecosystem has made it an attractive market for foreign capital, helping lower-rated firms access financing at lower costs. The country is also intensifying climate initiatives, including frameworks to support climate adaptation and clean energy projects.
GuarantCo has underwritten $1.5 billion in credit guarantees across 26 countries, including $120 million in India, and plans $150 million in guarantees for 2026. Its typical deals range from $15 million to $50 million, covering 50%-75% of project sizes, with plans to gradually reduce exposure to 30%-40% over the coming years.
Last week, GuarantCo completed its third Indian capital market transaction, providing a 65% guarantee for a 1.5 billion rupee green bond issued by Muthoot Capital Services. In September, it supported KPI Green Energy’s five-year green bond.
The firm’s expansion is expected to deepen India’s capital markets, provide longer-tenor financing, and contribute toward the country’s clean energy and net-zero goals.
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