Wednesday , 26 October 2016
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YES BANK, SIDBI Ink Pact for Financing Energy Efficiency Projects

  • YES BANK is the 1st bank to be empanelled as a participating financial institution (PFI) under the World Bank-initiated ‘Financing Energy Efficiency Projects’ program.

  • SIDBI to extend guarantee for securing 75% of the loan amount up to INR 15 Crores extended by YES BANK to MSMEs under this program.


YES BANK, India’s fifth largest private sector Bank, has signed a Memorandum of Understanding with SIDBI under the Partial Risk Sharing Facility (PRSF) for financing Energy Efficiency Projects program. The pact is the latest endeavor in YES BANK’s continuing commitment towards financing and promoting clean energy projects.


The PRSF has been sponsored by the World Bank with the support of Global Environment Facility (GEF) and Clean Technology Fund (CTF). As the Project Execution Agency, SIDBI will extend the guarantee for securing up to 75% of the loan amount up to INR 15 Crores extended by YES BANK to the MSMEs under this program. YES BANK is the first bank to be empanelled as a participating financial institution (PFI) under this facility.


The facility is expected to provide credit guarantee to more than 500 Energy Service Company (ESCO) implemented Energy Efficiency projects, which would mobilize financing of the tune of USD 127 million. Further, the project is also expected to result into significant energy savings of the tune of 1,002.1 Gwh and CO2 emissions reductions of the tune of 0.734 million tons.


The objective of the project is to transform the energy efficiency (EE) market in India by promoting increased level of EE investments, particularly through energy service performance contracting (ESPC) delivered through Energy Service Companies (ESCOs). The successful completion such projects, through PRSF support, is expected to reduce the risk commercial banks face in providing credit to the stakeholders; it will also showcase the viability of ESPC market for scaling up implementation of energy efficiency projects in Micro, Small and Medium Enterprises (MSMEs), large industries,  municipalities, and buildings sector in India.


Mr. Sumit Gupta, Group President, Retail Banking Assets Group, YES BANK, said, “Financing of Energy Efficiency Projects is still at a nascent stage in India. YES BANK is privileged to be the first bank to sign up with SIDBI for the prestigious facility. We are confident that this project will be instrumental in transforming the energy efficiency landscape in India.  Since inception, YES BANK has followed a Responsible Banking ethos and taken the lead in financing green and renewable energy projects, and this partnership is another endeavor in this direction.”


Shri Ramesh Dharmaji, Chief General Manager, SIDBI emphasized the role of SIDBI in improving Energy Efficiency in MSMEs through innovative financial mechanisms in the past and added that the current association with YES BANK is a step in this direction. He emphasized the need of such Risk Financing by banks for developing Energy Efficiency Market by Energy Service Companies. He mentioned that this fund is unique and first of its kind in the country and that it has commenced operation at the right time in view of the larger goals of achieving GHG Emission Reduction through Energy Efficiency and India’s commitment towards this objective.


YES BANK has taken a lead in renewable and clean energy financing in India. YES BANK was the first issuer of the Green Infrastructure Bonds in India and was also the first Indian bank to have made a commitment to funding 5,000 MW of renewable energy. YES BANK has also signed an MoU with The London Stock Exchange Group (LSEG) to collaborate on bond and equity issuance, with focus on developing green infrastructure. Most recently, YES BANK has committed to target mobilizing USD 5 billion for climate action by 2020 on the occasion of COP21, Paris.



Small Industries Development Bank of India (SIDBI), set up on April 2, 1990 under an Act of Indian Parliament, acts as the Principal Financial Institution for the Promotion, Financing and Development of the Micro, Small and Medium Enterprise (MSME) sector and for Co-ordination of the functions of the institutions engaged in similar activities .


The business domain of SIDBI consists of Micro, Small and Medium Enterprises (MSMEs),which contribute significantly to the national economy in terms of production, employment andexports. In order to promote and develop the MSME sector, SIDBI adopts a ‘Credit+’ approach, under which, besides credit, SIDBI supports enterprise development, skill upgradation, marketing support, cluster development, technology modernisation, etc., in the MSME sector through its promotional and developmental support to MSMEs.



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 Best Quality Bank of the World in India” by 2020.