PROPARCO and YES BANK sign financing agreement

PROPARCO and YES BANK sign financing agreement

PROPARCO and YES BANK sign financing agreement

  The financing agreement between Proparco and Yes Bank for a USD20M subordinated loan was signed on 14 September 2009 in the presence of the French Ambassador, His Excellency Mr. Jérôme Bonnafont, Luc Rigouzzo, Chief Executive Officer of Proparco and Mr. Rana Kapoor - Founder, Managing Director and CEO of YES BANK . This is Proparco’s first banking project in India.

The project is fully in line with Proparco’s mandate in India to finance local players that play a positive role in terms of energy issues and to support businesses or banks that are models from a social and/or environmental perspective.

Yes Bank enjoys satisfactory financial indicators and is also a model bank in terms of social and environmental responsibility. It has made this a cornerstone of its strategy and has developed activities in the sectors of carbon finance, financing renewable energies and microfinance by providing innovative financing to the rural world, participating in international initiatives and financing anti-pandemic industries.

Thanks to this operation, Proparco is building a partnership with India’s most dynamic private bank in terms of social and environmental responsibility. Indeed, Yes Bank provides advisory services and financing in sectors that are core to AFD Group’s mandate in India: carbon finance, renewable energies and microfinance. This subordinated financing will allow Yes Bank to increase its solvency ratio.

Yes Bank could also - via a partnership with UBI France - become a key channel for French businesses seeking to establish themselves in India and/or export to the country. This possibility is worth exploring and would also allow Proparco to enhance its range of financing for French businesses that are interested in the Indian market.