Mumbai based YES BANK has raised INR 315 Crore through the issue of Green Infrastructure Bonds to International Finance Corporation, Washington on a private placement basis. The bonds are for a tenor of 10 years.
This is International Finance Corporation’s first investment in an Emerging Markets GREEN BOND issue in the World.
YES Bank at renewable Energy Global Investors Meet & Expo, hosted by the Ministry of New and Renewable Energy, Govt. of India, has commitment to fund 5000 MW of Renewable Energy projects by 2020.
As per the company, money raised will be used towards meeting this commitment. This means, it will be invested in Green Infrastructure Projects like solar power and wind power in the Renewable Energy space.
In February this year, YES BANK, has issued green bond worth INR 1000 crores.
During the year 2014-15, YES Bank has raised USD 1.2 billion capital and signed signed an MoU of USD 220 million with OPIC, the US Government’s Development Finance Institution and Wells Fargo to explore financing to MSMEs.
Headquartered in the Lower Parel Innovation District (LPID) of Mumbai, YES BANK is India’s fifth largest private sector Bank having presence in all 29 states and 7 Union Territories of India.
Mr. Rana Kapoor, Managing Director & CEO, YES BANK said, “This first-ever investment by IFC, Washington in an Emerging Markets green bond further validates the tremendous commitment that global institutions have in YES BANK’s Responsible Banking ethos, and this transaction cements our bank’s status as a pioneer in Green Energy financing in India. This comes close on the heels of the highly successful issuance of India’s first ever Green Infrastructure Bonds of INR 1000 Crores by us in February this year, and strengthens our conviction and resolve to come up with more innovative and effective structures to support the acceleration of Sustainable Energy Financing.”
Green bonds have opened a new finance flow that will be essential to confronting climate change impact,” said Inessa Tolokonnikova, IFC’s Financial Institutions Group Manager for South Asia, based in Mumbai.