In another significant development in the budding Indian green bonds market, one of the country’s leading private banks has signed an agreement with the London Stock Exchange.
Yes Bank, one of several of India’s private banks, recently signed an agreement with the London Stock Exchange (LSE) regarding the listing of green bonds and equity instruments to raise funds for clean energy infrastructure. The bank has announced plans to list green bonds on LSE worth $500 million by December 2016.
Yes Bank has been a pioneer in the Indian green bond market, issuing the country’s first green bond in February this year in which it raised $150 million. A second green bond issue, floated in partnership with the International Finance Corporation (IFC), raised almost $50 million.
The Indian Import-Export Bank also raised $500 million through the first dollar-denominated green bonds issued in India, and is also expected to issue more bonds raising up to $1.5 billion over the next two to five years.
Several Indian companies and organisation are looking to raise funds to finance renewable energy projects through green bonds. These include banks, non-banking financial companies, and power generating companies.
Public sector entities like the Rural Electrification Corporation, Power Finance Corporation, IDBI Bank, Indian Renewable Energy Development Agency, and private sector entities like India Infrastructure Finance Limited, ICICI Bank, and Yes Bank, have all been urged by the government to issue green bonds to raise funds for renewable energy projects.
Green bonds are expected to be form a major part of India’s financial endeavour to achieve 175 GW installed renewable energy capacity by 2022. A number of financial institutions have pledged to provide funding worth $57 billion for renewable energy projects over the next 5-7 years.
Yes Bank has pledged to finance 5 GW of renewable energy capacity.
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