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Private sector lender YES Bank is planning to raise Rs 500 crore with an overallotment option through the country's first ‘green’ infrastructure bonds. The tenor of these are 10 years and the interest rate are sub-nine per cent.
The amount raised will be used by the bank to finance infrastructure projects in renewable energy and energy-efficiency including solar power, wind power, biomass, and small hydel projects. KPMG in India will be providing the assurance services annually, on the use of proceeds in line with green bond principles. The bonds are rated 'AA+' by ratings 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 completely by YES Bank’s investment banking team.
