Yes Bank is planning to raise Rs.330 cr (USD 50 million) by issuing a seven-year term green infrastructure bond to the Dutch Development Bank - FMO, on a private placement basis.
Yes Bank said in a release in New Delhi that FMO will be investing in Yes Bank's bonds via FMO's own sustainable bonds. It added that the definitive agreement was signed today at the 4thedition of FMO's Future of Finance conference which is being held in Katwijk, the Netherlands.
This is FMO's very first investment in a green bond issued by an Indian bank.
Yes Bank said that it shall raise the amount to finance green infrastructure, including wind and solar projects. This issuance shall be externally assured. The bank added that an external annual review and monitoring shall be undertaken on the use of proceeds along with the Green Bond Principles 2016.
This is Yes Bank's 3rd such green bond issuance in the past 18 months after its successful maiden issuance of Rs.1,000 cr (USD 160 million) in February 2015 followed by the Rs.315 cr private placement to IFC - International Finance Corporation in Washington in August 2015.
Yes Bank MD and CEO Rana Kapoor said that this was the first ever investment by FMO, the Netherlands, in a green bond in their country following IFC. He added that Yes Bank has been diligently working to evolve even more effective and innovative financing structures for speeding up sustainable energy financing in India.
Yes Bank had committed, on the occasion of COP21, to mobilise USD 5 billion from 2015 to 2020 for climate action via lending, investing and raising capital towards adaptation, mitigation and resilience.
For more details, visit Yes Bank share price history.
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