YES BANK signs MoU with Bureau of Energy Efficiency, appointed as “Participating Financial Institution” to Partial Risk Guarantee Fund for Energy Efficiency (PRGFEE)
YES BANK, India’s fourthlargest private sector bank, signs MoU with Bureau of Energy Efficiency (BEE) to become the Participating Financial Institution (PFI) to avail the risk guarantee under the Partial Risk Guarantee fund for Energy Efficiency (PRGFEE). The PRGFEE is a risk sharing mechanism that provides YES Bank with a partial coverage of risk involved in extending loans for Energy Efficiency projects with an objective of scaling-up Energy Efficiency investments in India.
This MoU is a formal agreement between YES BANK and BEE, a statutory body under Ministry of Power, Government of India, to channelize bank finance for energy efficiency projects through BEE approved Energy Services Companies (ESCOs). The PRGFEE is an innovative financial instrument which uses the public resources to channelize private sector finance towards promoting of Energy Efficiency in different sectors of the economy, including MSMEs, buildingsand municipalities.
Speaking on the signing of the MoU, Mr. Rana Kapoor, MD & CEO, YES BANK, said “Efficient use of energy is a key step towards fulfilling the Government’s mission of reducing emission intensity and dependence on fossil fuels. YES BANK is committed to global SDGs and climate action and proud to partner Ministry of Power’s pioneering initiative towards channelizing finance foran energy efficient, low carbon future for India.” Speaking on the occasion, Ms. Namita Vikas, Group President & Global Head, Climate Strategy & Responsible Banking, YES BANK LTD said, “Energy saving is the cleanest, and the most important, energy resource. Therefore, a robust investment in energy efficiency projects is the most sustainable way for India to transition to a low-carbon economy. YES Bank is proud to join hands with BEE for initiatives like Partial Risk Guarantee Fund for Energy Efficiency (PRGFEE) that would help boost the support for deeper penetration of the concept in the industry through the ESCO model.” Previously, a memorandum of understanding was signed between SIDBI and YES BANK under the Partial Risk Sharing Facility (PRSF) for financing energy efficiency projects programme sponsored by the World Bank.