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IFC raises Rs315 crore to invest in Yes Bank green bonds

According to reports, International Finance Corp. (IFC) on Tuesday said it has raised Rs.315 crore (about $49.2 million) to invest in the so-called green bonds issued by Yes Bank Ltd.

The World Bank’s arm said it will be the first green bond to be listed overseas. The bonds will listed on the London Stock Exchange (LSE).

“IFC will invest the proceeds of the bond in a green bond issued by Yes Bank, (which) will invest the proceeds of its bond in renewable energy and energy efficiency projects, mainly in the solar and wind sectors,” IFC said in a statement.

In February, Yes Bank had raised Rs.1,000 crore from insurance companies, pension funds, foreign portfolio investors and mutual funds to finance green infrastructure projects like solar power, wind power and biomass.

“Addressing climate change is a priority for IFC in India, and the green masala bond demonstrates the powerful role of capital markets in mobilizing international savings to help close the climate finance gap,” IFC vice president and treasurer Jingdong Hua, said in the statement. “Adding the rupee as a new green bond currency also supports our goals to strengthen this important asset class.”

The bond is a part of IFC’s $3 billion masala bond programme, out of which $1.66 billion has been sold in a range of tenors for the offshore rupee bond market.

The latest bonds will yield 6.45% per annum maturing on 10 August 2020, each of Rs.10,000 denomination. JP Morgan Chase & Co. was the underwriter to this issue.

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