Yes Bank rose 0.49% to Rs 1,242.75 at 10:47 IST on BSE after the company said that it will raise Rs 330 crore by issuing seven year Green Infrastructure Bonds to FMO, the Dutch development bank on a private placement basis.
The announcement was made during market hours today, 27 September 2016.Meanwhile, the BSE Sensex was up 57.45 points, or 0.20%, to 28,351.73.
On BSE, so far 40,000 shares were traded in the counter, compared with average daily volume of 2.48 lakh shares in the past one quarter. The stock hit a high of Rs 1,251.65 and a low of Rs 1,238.85 so far during the day. The stock hit a record high of Rs 1,450 on 7 September 2016. The stock hit a 52-week low of Rs 632.25 on 20 January 2016. The stock had underperformed the market over the past 30 days till 26 September 2016, falling 6.80% compared with 1.84% rise in the Sensex. The scrip had, however, outperformed the market in past one quarter, rising 15.61% as against Sensex's 6.67% rise.
The large-cap private sector bank has equity capital of Rs 421.35 crore. Face value per share is Rs 10.
Yes Bank announced that it will raise Rs 330 crore (approximately $50 million equivalent) through an issue of a 7-year Green Infrastructure Bonds to FMO, the Dutch Development Bank, on a private placement basis. FMO will be investing in Yes Bank's bonds through FMO's own sustainable bonds. The definitive agreement was signed at the fourth edition of FMO's Future of Finance conference being held in Katwijk, The Netherlands.
The amount raised will be used by Yes Bank to finance Green Infrastructure including solar and wind projects in the renewable energy space. This issuance would be externally assured by a reputed third party. An external annual review and monitoring would be undertaken on the use of proceeds in line with the Green Bond Principles 2016. This is the third such green bond issuance by Yes Bank in the last 18 months, after the successful maiden issuance of Rs 1000 crore ($160 million equivalent) in February 2015 followed by the Rs 315 crore ($50 million equivalent) private placement to International Finance Corporation (IFC), Washington in August 2015.
India is currently actively tapping into its renewable energy potential with the announced target of 175 gigawatt (GW) of capacity installation by 2022, and favourable policy support. India is estimated to require over $150 billion (about 10 lakh crore equivalent) for achieving the renewable energy target by 2022, the bank said in a statement.
Green Bonds have been emerging as one of the primary sources of financing for renewable energy across the world. Globally, the issues amounted to almost $46 billion in 2015, and India's Green Bond market also has seen an exponential growth, touching $2 billion, post Yes Bank's first issue in February 2015. Such issuances will catalyze the market for Green Bonds in India and encourage responsible investors to facilitate funding towards renewable and clean energy projects, it added.
Yes Bank's net profit rose 32.8% to Rs 731.80 crore on 25.4% growth in operating income to Rs 4762.83 crore in Q1 June 2016 over Q1 June 2015.
Yes Bank is one of the leading private sector banks in India.
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