Yes Bank green bond raises $49m for clean energy projects in India
Indian private sector bank raises nearly $50m through its second green bond issue as part of its efforts to fund 5 GW of renewable energy
India's Yes Bank has raised nearly $50 million through its second green bond issue, as part of its efforts to fund 5 GW of renewable energy projects by 2020.
Yes Bank secured Rs 315 crore ($49.2 million) from the International Finance Corporation (IFC) for clean energy and energy efficiency projects in India.
The Mumbai-based bank raised $150 million from India’s first ever green bond issue launched in February this year and was hugely successful being subscribed twice over.
The new green bonds were issued at 8.95 per cent for 10 years.
Several banks and financial institutions in India have promised to provide $57 billion in funding for renewable energy projects over the next 5-7 years.
Analysts have estimated an explosive expansion for the green bonds market in India with significant amounts of capital needed to meet the country’s target of adding 175 GW renewable energy capacity by 2022.
The Indian Export-Import Bank sold $500 million of green bonds with a yield of 2.75 per cent and an impressive installed capacity target of 175 GW of renewables.
The Bank is expected to issue further green bonds as it aims to raise $1.5 billion up to 2020.
The administration of Prime Minister Narendra Modi has instructed several organisations in both the public and private sectors to launch green bonds to access the international investments in the clean energy sector.
The targets of these bonds are expected to include the Asian Development Bank, Japan International Cooperation Agency, World Bank, IFC, and KfW.
