European Investment Bank and private sector lender Yes Bank Ltd have floated a $400 million (Rs 2,562 crore) co-financing programme for construction of solar power plants and wind farms across India.
Yes Bank will manage the programme. It will be supported by 15-year $200 million loan (Rs 1,281 crore) by European Investment Bank (EIB), alongside financing from Yes Bank, project promoters and other financial institutions, Yes Bank said in a stock exchange disclosure.
The programme will streamline financing for a range of renewable energy projects being built and operated by Indian corporations and private sector developers.
The solar projects to be developed under the programme have already been identified in Rajasthan, Telangana, Maharashtra and Karnataka, the bank said.
“The $400 million programme will make a significant contribution to harnessing wind power and solar energy to produce green energy and create jobs, among others,” said Andrew McDowell, vice president of European Investment Bank.
“With the transaction, we remain on track to achieve our commitment to finance 5,000 MW of renewable energy made at the first RE-INVEST Summit in February 2015. The deal is also in line with our commitment of mobilising $5 billion for climate finance by 2020,” said Rana Kapoor, managing director and chief executive officer of Yes Bank.
EIB is the lending institution of the European Union and is owned by EU’s 28 member states. In recent months, EIB has made investments in India by backing expansion of the Bengaluru and Lucknow metro systems, according to the statement.
Earlier this year, Yes Bank signed a pact with US development finance institution Overseas Private Investment Corporation and banking and financial services major Wells Fargo to raise funding worth $150 million to support small and medium-sized enterprises.
In September 2016, the bank raised Rs 330 crore ($50 million) from Dutch development bank FMO.
In August 2015, Yes Bank raised Rs 315 crore ($50 million) from International Finance Corporation, the private sector investment arm of World Bank.