- LSEG and YES BANK to collaborate on debt and equity issuances
- Yes BANK aims to list up to $500m Green Bond on London Stock Exchange in 2016
- YES BANK to potentially raise equity capital through global depository receipt listing in London
- Confirms London’s position as leading international green finance centre
London Stock Exchange Group (LSEG) today signed a Memorandum of Understanding with YES BANK, India’s fifth largest private sector bank, to develop collaboration around bond and equity issuance, with a particular focus on Green Infrastructure Finance.
As part of the Agreement, YES BANK confirmed that it plans to list a Green Bond of up to $500m on London Stock Exchange by December 2016 and to raise further capital in London, potentially through the listing of Global Depository Receipts (GDR) as part of its overall $1bn of equity capital raising plans.
The agreement, signed by Nikhil Rathi, CEO, LSE plc and Rana Kapoor, Founder, Managing Director & CEO of YES BANK in the same week as the visit of Indian Prime Minister Narendra Modi will help strengthen the increasingly vibrant economic and financial ties between the UK and India.
Nikhil Rathi, CEO, London Stock Exchange plc & Director of International Development, LSEG said:
"London is the world’s most international financial market and has a long history working with partners in India. The London Stock Exchange is a natural partner for YES BANK in these significant debt and equity issuances. YES BANK is a leader in sustainable finance in India. We are honoured to welcome Mr. Rana Kapoor and his team from YES BANK to sign this important Agreement which demonstrates our commitment to supporting the raising of green capital for India."
Rana Kapoor, Founder, Managing Director & CEO of YES BANK said:
"The YES BANK – LSE strategic MoU signed along side the historic visit of Hon’ble Prime Minister of India Shri Narendra Modi to UK presents a fantastic opportunity to create mutually beneficial synergies. YES BANK will endeavour to improve the access to long term overseas funds for corporate in India, through capital markets in the UK particularly towards Green Infrastructure Financing, which is high on India’s agenda. We also look forward to working with the LSE in establishing London as the leading centre for rupee denominated offshore capital raising."
There are currently 54 Indian companies listed in London, by primary country of operation, with a combined market capitalisation of £103 billion. 33 are listed on the Main Market and 21 are quoted on AIM. In the last two years, London has established itself as the leading centre for off-shore Rupee debt issuance – so-called ‘Masala bonds’. This week, India’s Housing Development Finance Corporation announced the first masala bond programme from an Indian private sector corporate, planning to raise a total of USD750m in London and in August this year, the IFC, supported by YES BANK listed a 3.15 billion rupee green bond on London Stock Exchange.