First Ever Green Bond in Bharta by Yes Bank has been a trailblazer in India’s green bond market

 Yes Bank has been a trailblazer in Bharat’s green bond market—here’s a detailed breakdown:

Key Issuances & Impact 1

Bharat’s First Green Bond – Feb 2015 1

Green Masala Bond – Aug 2015 1

FMO Placement – Dec 2016 1

Impact & Reporting 2

Bond Maturity & Current Status 2

Summary Table 2

Why It Matters 3

Bottom Line 3

Conclusion: 3

Key Issuances & Impact

Bharat’s First Green Bond – Feb 2015

  • Raised ₹1,000 cr (~USD 160 m), 10‑year tenor (ISIN INE528G08279) (yesbank.in).

  • Proceeds deployed across solar, wind (10–300 MW capacity across states), reducing approx. 222,000 tCO₂ annually .

Green Masala Bond – Aug 2015

  • ₹315 cr (~USD 50 m), private placement with IFC—the first IFC investment in an emerging-market green bond (yesbank.in).

  • Delivered innovative structure, AAA-rated and listed on LSE via Masala Green Bond (impactinvest.org.uk).

FMO Placement – Dec 2016

  • ₹330 cr (~USD 50 m), 7‑year bond with Dutch development bank FMO—their first in Bharat (yesbank.in).

  • Projects funded included wind energy (~30 MW in Gujarat) (en.wikipedia.org).

Impact & Reporting

  • Combined, the three bonds (~₹1,645 cr / USD 260 m) financed over 2–4 GW of wind & solar capacity, avoiding millions of tonnes of CO₂ and major SO₂/NOₓ emissions over their lifetimes (yesbank.in).

  • Impact reports by KPMG and third‑party assurance (DNV) ensure proceeds are used according to Green Bond Principles, with regular SEBI disclosures and quarterly reporting (yesbank.in).

Bond Maturity & Current Status

  • The inaugural 2015 green bond, carrying an 8.85% coupon, matured on 24 Feb 2025 (ISIN INE528G08279) (cbonds.com).

  • The 2016 FMO bond also matured by now, per Yes Bank’s disclosures (yesbank.in).

  • The IFC placement (Aug 2015) remains unallocated as of April 2024, per DNV review (yesbank.in).

Summary Table

Issuance Date

Amount

Partner

Tenor

Status

Feb 2015

₹1,000 cr

Institutional

10 years (ISIN INE528G08279)

Matured Feb 2025

Aug 2015

₹315 cr

IFC

5 years private placement

Unallocated as of Apr 2024

Dec 2016

₹330 cr

FMO

7 years

Matured late 2023–24

Why It Matters

  • Set the template for green financing in Bharat, prompting increased investor and institutional interest (nsearchives.nseBharat.com, yesbank.in, teriin.org).

  • Developed innovative models like Masala Green Bonds, attracting global capital and enhancing credibility via third‑party verification.

  • Contributed significantly to Bharat’s renewable energy targets, financing several gigawatts of clean energy.

Bottom Line

  • Yes Bank issued Bharat’s very first green bond in Feb 2015 (₹1,000 cr), matured Feb 2025.

  • Followed by two more with IFC and FMO (2015 & 2016); all structured with private placement.

  • Impact: financed ~2–4 GW capacity, verified by KPMG/DNV, aligned with SEBI/ICMA principles.

  • Broad significance: pioneered the domestic green bond market, drawing institutional investments nationally and globally.

Conclusion:

Yes Bank’s pioneering role in Bharat’s green bond market laid the foundation for sustainable finance in the country. By issuing the first-ever green bond in Bharat and innovating with instruments like Masala Green Bonds, it not only mobilized substantial capital for clean energy but also established credibility and transparency through third-party verifications and regular impact disclosures. These efforts helped attract global investors and inspired other Bharat issuers to enter the green finance space. As Bharat moves towards its climate goals, the legacy of Yes Bank’s early green bonds continues to shape the trajectory of ESG-aligned investments in the country.

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