India's Yes Bank, USAID team up on $20 mil renewable energy fund

New Delhi: New generation private bank Yes Bank will launch a $20-million fund for providing seed capital to smaller and medium companies for renewable energy and water treatment projects.

"We will activate a $20-million fund in 2006 for extending loan facility to small and medium companies in renewable energy and water treatment," Yes Bank CEO Rana Kapoor said.

This is a 50-50 partnership between United States Agency for International Assistance (USAID) and Yes Bank, he said. | Read more Finance news. |

"The documents are being finalised, we hope to come out with the fund soon," Kapoor said, hinting that it may come early next year.

Yes Bank had earlier signed an agreement with USAID, under which the US government gives loan guarantee with a cumulative value of $20 million to the bank for lending to SMEs that aim to commercialise renewable, efficient energy and water technologies, products and services.

In case of default, the US guarantee covers upto 50 per cent of net principal loss and lowers the risk of Yes Bank to invest in SMEs.