This report outlines a financial intervention to enhance the capital flow into India's ongoing energy transition. It proposes a subsidised credit enhancement for domestic renewable energy (RE) bond issuances. Currently, banks and non-banking financial companies (NBFCs) do not have enough headroom to extend further credit to the RE sector. One of the alternatives is to issue bonds to refinance banks and NBFC loans that could free up the tied-up bank capital and allow lending to the projects in the sector. However, most of the RE projects in India may not find it easy to accomplish refinance through bonds because they are rated below AA, the unsaid forbidden territory of domestic bond issuances. The use of existing credit enhancement products to uplift the ratings to the required AA band does not allow for a feasible all-in cost of borrowings. This fact has led to minimal uptake of domestic RE bond issuances and locking of the debt capital within existing projects. Hence, a subsidised credit enhancement holds the key to unlocking the flow of capital from the bond market. The report delineates the structure of a subsidised first-loss cover facility to credit-enhance bonds raised by the issuers looking to refinance their underlying projects.