This story is from September 27, 2016
Dutch Development Bank
, on a private placement basis. "FMO will be investing inYes
Bank's bonds through FMO's own sustainable bonds. The definitive agreement was signed today at the fourth editionof FMO
's Future of Finance conference being held in Katwijk, theNetherlands
," YesBank
said in a release here. This is FMO's first investment in a green bond issued by a bank in India. Yes Bank said it will raise the amount to finance green infrastructure, including solar and wind projects. This issuance will be externally assured. An external annual review and monitoring will be undertaken on the use of proceeds in line with the Green Bond Principles 2016, the bank added. This is Yes Bank's third such green bond issuance in the last 18 months after its successful maiden issuance of Rs 1,000 crore (USD 160 million) in February 2015 followed by the Rs 315 crore private placement toInternational Finance Corporation
(IFC
) inWashington
in August 2015. "This first-ever investment by FMO, the Netherlands, in a green bond in our country following IFC... Yes Bank has been assiduously working to evolve even more innovative and effective financing structures for acceleration of sustainable energy financing in India," said Yes Bank MD and CEO Rana Kapoor. Linda Broekhuizen, CIO of FMO, said: "FMO is committed to making a positive impact on green financial development. Through the bonds, we aim to contribute towards a more sustainable future, creating opportunities for durable activities that follow the goals set during COP21 inParis
last year." On the occasion of COP21, Yes Bank had committed to mobilising USD 5 billion from 2015 to 2020 for climate action through lending, investing and raising capital towards mitigation, adaptation and resilience. This commitment was strengthened by indicating an action plan to target funding of 5,000 mw of clean energy, gradually increasing the percentage of renewable energy in the power portfolio. KPM ARD