YES Bank floats India's first 'green infra' bond issue
17 February 2015
Private sector lender YES Bank has successfully floated the country's first 'green infrastructure' bond. The issue, worth Rs500 crore, has an overallotment option. The tenor of these bonds is 10 years and the interest rate is below 9 per cent.
The bank will use the amount raised to finance infrastructure projects in renewable energy and energy-efficient (including solar, wind, and biomass power as well as small hydroelectric) projects.
KPMG India will provide assurance services annually on the use of proceeds in line with green bond principles. The bonds are rated 'AA+' by rating agencies.
The issue comes on the back of a record $1.2-billion capital raised by the bank in 2014-15 through multiple transactions, including a $500-million funding in May 2014, a $422-million syndicated loan in October 2014 and a $200-million loan from Asian Development Bank in December.
The issue will remain open till Monday and it has been underwritten and arranged entirely by YES Bank's investment banking team.