Yes Bank Raises Rs 1,000cr Via Green Bonds, Double The Target

Private sector Yes Bank  raised Rs 1,000 crore against a targeted Rs 500 crore by issuing green infrastructure bonds. The bonds are of 10-year tenor and the money raised will be used for funding renewable energy projects in solar, wind, biomass and small hydel plants, the lender said in a statement here. The bank, which had set out with a target to raise Rs 500 crore, saw demand from insurance companies, pension and provident funds, foreign portfolio investors and mutual funds, which resulted in the greenshoe option being utilised. this is the first green infrastructure bond issue in India and expressed satisfaction at the response. The statement, however, did not offer any details on the pricing of the issue. it had made a commitment to fund 5,000 mw of renewable energy projects during the recent summit organised by the Government and added the proceeds from the issue will be used to fund the same. In 2014-15, India's fourth largest private Bank bank raised USD 1.2 billion through various transactions, including USD 500 million funding last May, a USD 422-million syndicated loan in October and a USD 200-million loan from the Asian Development Bank in December. It said globally, USD 35 billion was raised in green bonds in 2014, while the Indian market for this offering is either non-existent or in nascent stage. Given the long-term gestation of such projects, the bonds are useful in taking care of any potential asset liability mismatches, the bank had said earlier. Shares of Yes Bank closed at Rs 794.85 apiece on BSE, down 0.65 per cent over previous close.
Yes Bank Raises Rs 1,000cr Via Green Bonds, Double The Target Yes Bank Raises Rs 1,000cr Via Green Bonds, Double The Target Reviewed by Money99 on 07:23:00 Rating: 5

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