YES BANK and LSEG to collaborate on debt and equity issuance
YES BANK aims to list up to $500m Green Bond on London Stock Exchange in 2016
YES BANK to potentially raise equity capital through global depository receipt listing basis market conditions
Collaboration confirms London’s position as leading international green finance centre
(L) Mr. Rana Kapoor, MD & CEO, YES BANK and Mr. Nikhil Rathi, CEO, LSE Plc at the LSE Opening Bell Ringing Ceremony & (R) Mr. Kapoor and Mr. Rathi Signing the MoU
London, 19th January 2015: YES BANK, India’s fifth largest private bank, today formalised the Memorandum of Understanding signed with The London Stock Exchange during Prime Minister Narendra Modi’s UK visit in November 2015, to develop bond and equity issuance, with particular focus on the relatively untapped sector of Green Infrastructure Finance.
YES BANK was the first issuer of the Green Infrastructure Bonds in India. As a catalyst for Green Infrastructure finance, allowing investors to facilitate funding towards renewable and clean projects in India, YES BANK is also the first Indian Bank to have made a commitment to funding 5000 MW of renewable energy.
As part of the agreement with LSEG, YES BANK confirmed that it plans to list a Green Bond of up to $500m on London Stock Exchange by December 2016. YES BANK will also evaluate the possibility of raising further capital in London, potentially through the listing of Global Depository Receipts (GDR) as part of its overall $1bn of equity capital raising plans, basis market conditions.
Mr. Kapoor and Mr. Rathi at LSEG Headquarters
The agreement, signed by Mr. Rana Kapoor, Managing Director & CEO of YES BANK and Nikhil Rathi, CEO, LSE Plc will help strengthen the increasingly vibrant economic and financial ties between the UK and India.
Speaking about the collaboration, Rana Kapoor, Managing Director & CEO, YES BANK said: “Following the historic visit of Prime Minister Narendra Modi to the UK, the YES BANK – LSEG strategic MoU presents an incredible opportunity to create mutually beneficial partnerships. YES BANK will strive to improve the access to long term overseas funds for corporations in India, through capital markets in the UK particularly towards Green Infrastructure Financing, which is high on India’s agenda. We also look forward to working with LSE in establishing London as the leading instrument for raising rupee denominated offshore capital via ‘Masala bonds’.
Given the Indian Government’s focus on renewable energy with a target of 175 GW of additional capacity installation by 2022, it is estimated that the renewable energy sector will require significant and structured financing. At the moment, sector limits, high street interest rates and asset-liability mismatch are the main challenges faced by the existing financing mechanisms. Therefore, a need for innovative financing mechanisms to finance projects in renewable energy and energy efficiency space has risen.
About YES BANK
YES BANK, India’s fifth largest private sector Bank with a pan India presence across all 29 states and 7 Union Territories of India, headquartered in the Lower Parel Innovation District (LPID) of Mumbai, is the outcome of the professional & entrepreneurial commitment of its Founder Rana Kapoor and its Top Management team, to establish a high quality, customer centric, service driven, private Indian Bank catering to the future businesses of India.
YES BANK has adopted international best practices, the highest standards of service quality and operational excellence, and offers comprehensive banking and financial solutions to all its valued customers.
YES BANK has a knowledge driven approach to banking, and offers a superior customer experience for its retail, corporate and emerging corporate banking clients. YES BANK is steadily evolving as the Professionals’ Bank of India with the long term mission of “Building the Finest Quality Bank of the World in India” by 2020.
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