Mon. Jun 24th, 2024

Rana Kapoor’s YES Bank was Awarded the ‘Pioneers in Emerging Markets-India’, for the first Green Bond in India.

Looking the grave scenario of global warming, it doesn’t come as any surprise that many multinationals have been mainstreaming climate finance within the global financial sector. All while echoing loud to establish industry benchmarks towards creating a sustainable ecosystem. YES Bank pioneered the drive by being accoladed as the first Indian Bank to issue Green Infrastructure Bonds in India. While further motivating institutions in the Asia Pacific region to partake in the best-of-the-line practices that are linked with sustainable growth and development. Launched by Climate Bonds Initiative at its inaugural Conference on Global Leadership in the Green Bonds Sector, YES Bank bagged the esteemed Green Bond Pioneer Award for being the ‘Pioneers in Emerging Markets-India’ in an award ceremony at London Stock Exchange.

Spearheading the Drive of Greener Future With Greener Bonds

When it comes to annual greenhouse-gas emissions, India is the world’s third largest country that is increasingly spiralling down its dependence on sources of energy that are linked with fossil fuel. It is to stay closer to this greener and benevolent goal that a green bond market has been developed to assist the long-term financing needs for projects linked with climate change. YES Bank, under the robust leadership of its Managing Director and CEO Rana Kapoor, has emerged as a Indian hero in the climate financing by undertaking the foremost step by issuing a green bond with $50 million in 1FC investment back in 2015. By playing a substantial role in sustaining this progress to date, YES Bank has been expanding its focus on climate-related financing for women-owned small and medium enterprises (SMEs).

Rooted in the Ideology of Responsible Banking

Stemmed in the ideology of responsible banking, YES Bank is working tirelessly to support the Government of India by stablishing markets for  green infrastructure adding to the country’s sustainable development. Over 40,000 tonnes in greenhouse gas emissions has been averted by the help of YES Bank’s investments in the sector of renewable energy. It is because of YES Bank’s leadership in establishing the potential of green bonds in India, along with vitalising market activities and facilitating wholesome and positive engagements with investors, governments and businesses that it has been awarded India’s first ever Green Infrastructure Bonds for INR 1000 Crore (USD 160 million).

Value Addition of IFC

International Finance corporation (IFC) of the World Bank Group provides capital needed for investing in green bonds for developing countries. Assisting countries like India amalgamate seamlessly with their climate goals by providing funds for renewable and energy efficient development, IFC’s bonds bear the trademark for climate-smart development. YES BANK and International Finance Corporation (IFC) opened trading of the world’s first Green Masala Bond, while getting listed on the London Stock Exchange of INR 3.15 billion issued by IFC. 

Aligning well with the ideologies, and in partnership with YES Bank, IFC is working tirelessly towards its extensive experience working in infrastructure finance, small business lending, gender finance, and renewable energy finance while unearthing meaningful collaborations in capital markets. While leaning from each other, both YES Bank and IFC aim at creating products towards the betterment of humanity at large. Further, IFC’s engagement with YES Bank also supports women led businesses too. 

According to Managing Director & CEO YES Bank, Rana Kapoor, “This first-ever investment by IFC was an emerging markets green bond, which further validates the tremendous commitment that global institutions have in YES Bank’s Responsible Banking ethos, and this transaction cements our bank’s status as a pioneer in green energy financing in India.” Moving ahead, YES Bank’s future goal is to diversify its SME portfolio by 50 percent. 

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