<div><em>The amount raised will be used by YES Bank to finance Green Infrastructure Projects like solar power and wind power in the Renewable Energy space, writes <strong>Monica Behura</strong></em><br><br><br>YES Bank, India’s 5th largest private sector bank, has raised Rs 315 crore through the issue of Green Infrastructure Bonds to International Finance Corporation, Washington, member of World Bank Group on a private placement basis. This is the first investment by IFC in an Emerging Markets Green Bond issue in the World. The bonds are for a tenor of 10 years.</div><div> </div><div>The amount raised will be used by YES Bank, to finance Green Infrastructure Projects like solar power and wind power in the Renewable Energy space. KPMG in India will be providing the Assurance Services annually, on the use of proceeds in line with the Green Bond principles.</div><div> </div><div>This is the second such green bond issuance by YES BANK after a highly successful issuance of Rs 1000 crore in February 2015 The bank has raised a record $1.2 billion capital raised by the Bank in 2014-15 through multiple transactions including a $500 million funding in May 2014, $422 million Syndicated Loan in October 2014 and $200 million Loan from Asian Development Bank in December 2014. In January 2015, YES Bank also signed an MoU of $220 million with OPIC, the US Government’s Development Finance Institution and Wells Fargo to explore financing to MSMEs.</div><div> </div><div>Given the Govt. of India’s focus on India’s Renewable Energy Potential and target of 175 GW of additional capacity installation by 2022, it is estimated that the renewable energy sector will require significant financing. Currently, there are a number of challenges in the existing financing mechanisms including sector limits, high interest rates and Asset-Liability mismatch, and therefore there is a need to evolve innovative financing mechanisms to aid projects in the renewable energy and energy efficiency space. Green Infrastructure Bonds are one such avenue to allow for financing to flow to vital green energy projects.</div>
