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Yes Bank - CleanTech SIG Mumbai - Aug 30, 2008


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Yes Bank - CleanTech SIG Mumbai - Aug 30, 2008

  1. 1. YES Bank’s Role in the Sustainability Space Presented by Sustainable Investment Bank & Private Equity YES Bank Ltd. Emerging Markets Sustainable Bank of the year 2008
  2. 2. Responsible Banking - YES BANK’s Differentiated Approach <ul><li>Vision: To create a commercially viable financial institution that incorporates sustainable development within core business functions </li></ul><ul><li>Mainstream sustainability through multi-stakeholder engagement both internally & externally </li></ul><ul><li>Link shareholder value with sustainable development of India ( Fourth Generation Sustainability ) </li></ul><ul><li>Engage in strategy development ( in thought ) and execution ( in action ) </li></ul>Responsible Banking as a Core Pillar of YES BANK Responsible Banking Agribusiness & Rural Banking (ARB) Sustainable Investment Bank (SIB) Projects Microfinance Responsible Banking in Action Not for Profits Social Entrepreneurs Investment Banking Thought Leadership / Advisory / Institutionalization Credit + Services Credit + Services M&A/PE/ Funds Management CSR & Sustainability Initiatives Rural Lending Alternative Energy & Environment Carbon Finance Social Enterprises Microfinance Institutions Group (MIG) YES SAMPANN Direct Lending <ul><li>Other Bank Divisions: </li></ul><ul><li>Corporate Finance </li></ul><ul><li>Emerging Corporates </li></ul><ul><li>Corp. & Inst. Banking </li></ul><ul><li>Retail Branches </li></ul><ul><li>Business Banking </li></ul>Deal Generation Deal Generation Deal Generation Deal Generation Deal Generation Deal Generation Responsible Banking in Thought
  3. 3. Sustainable Investment Bank - SIB
  4. 4. Sustainable Investment Bank SIB has established a unique positioning for itself driven by strong human capital, financial expertise, subject knowledge and excellent service delivery in a short period of its existence SIB Offerings Alternate Energy & Environment Advisory Carbon Financing & Advisory Services Social Enterprises & Rural Advisory Clean Enterprise group Clean Technology Group
  5. 5. Alternate Energy & Environment Advisory Group Clean Energy / Technologies <ul><li>Biomass </li></ul><ul><li>Solar </li></ul><ul><li>Wind </li></ul><ul><li>Hydro </li></ul><ul><li>Energy Efficiency : Industrial & Utility Applications </li></ul><ul><li>Clean Coal </li></ul><ul><li>Gas Based Energy & Energy Infrastructure </li></ul>Distributed Energy <ul><li>Mini-Micro Hydel solutions for local communities </li></ul><ul><li>Micro bio-fuel/bio-energy solutions </li></ul><ul><li>Rural & Small Scale Self Sufficient Projects </li></ul>Environment: Engineering & Services <ul><li>Waste management </li></ul><ul><li>Water treatment </li></ul><ul><li>Urban infrastructure </li></ul><ul><li>Sanitation/Sewage Management </li></ul>Transportation : Engineering & Services <ul><li>Hybrid & Electric Vehicles </li></ul><ul><li>Commercial clean energy solutions </li></ul><ul><li>Fuel Cell Applications </li></ul><ul><li>Energy Storage </li></ul>Focus Areas
  6. 6. Alternate Energy & Environment Advisory <ul><li>A team of dedicated professionals with deep understanding of and expertise in Alternate Energy & Environment (AEE) related business </li></ul><ul><li>Addresses the need for special Investment Advisory in AEE business i.e. business which has significant beneficial impact on environment </li></ul><ul><li>Special focus for catering to the needs of startup technology companies </li></ul><ul><li>Focus on Sell Side advisory and Buy Side assignment for Strategic (non financial) Sponsors </li></ul><ul><li>Buy side advisor for acquisition of a small wind turbine company based out of Scotland </li></ul><ul><li>Buy side advisory for large Indian corporate house to acquire a green building material company </li></ul><ul><li>Sell side advisor for equity placement of a Energy Trading & Generation (Biomass) company based in India </li></ul><ul><li>Sell side advisor for a Biofuels company for private placement of equity and business structuring </li></ul><ul><li>Strategic advisor for an Australian wind technology company for its India entry strategy </li></ul><ul><li>Advise on strategic business Advisory </li></ul><ul><li>Financial advisory & structuring </li></ul><ul><li>Help in Acquiring / Selling business in AEE space </li></ul><ul><li>Structure and advise on acquisition financing structures </li></ul><ul><li>Strong network with funds and VC’s focused on AEE sector </li></ul><ul><li>Advise on appropriate valuation strategies and help in negotiation stage </li></ul><ul><li>Strong financial structuring expertise </li></ul>Private Placement M&A Advisory Business Planning / Structuring
  7. 7. Social Enterprises & Rural Advisory <ul><li>Offers a full range of Investment Banking products to social, rural & agri ventures </li></ul><ul><li>Work in co-ordination with YBL’s Micro Finance Institutions Group and Agribusiness - Rural Banking Group </li></ul><ul><li>Experienced team of professionals coupled with strong network of socially responsible corporate, social / rural development organizations, NGOs and rural businesses </li></ul><ul><li>Exclusive Advisor for a research focused agriculture company for development of its franchise / JV model for large Jatropha cultivation </li></ul><ul><li>Private equity placement for an enterprise involved with providing market access, training and development to rural artisans involved in ethnic toys and furniture manufacturing   </li></ul>Private Placement M&A Advisory Business Planning / Corporate Strategy <ul><li>Suggest appropriate business plan and provide structuring support keeping in view the social impact </li></ul><ul><li>Prepare financial models and provide inputs </li></ul><ul><li>Suggest appropriate JV / Franchise / Distribution strategies </li></ul><ul><li>Based on the above develop a sustainable capital/financial structure </li></ul><ul><li>Help in acquiring / selling appropriate businesses right from target identification till valuation & negotiation stage </li></ul><ul><li>Structuring and arranging acquisition finance </li></ul><ul><li>Strong network in venture capital, private equity industries particularly funds focused to invest in social enterprises </li></ul><ul><li>Suggest appropriate valuation strategies and help in negotiation stage </li></ul><ul><li>Strong financial structuring expertise </li></ul>
  8. 8. Carbon Financing & Advisory <ul><li>One of the pioneering organizations in the carbon business </li></ul><ul><li>Strong understanding of the climate change sector </li></ul><ul><li>Aggressively building up team with technical competence </li></ul>Carbon Financing (Debt &Equity) Carbon Aggregation & Arrange Buy / Sell Corporate Strategy / Carbon Advisory <ul><li>Provide advisory in terms of carbon credit generation / aggregation </li></ul><ul><li>Make business plans keeping in view future CERs flows and generate carbon equity in projects </li></ul><ul><li>Assist in identification & negotiations with buyers / ERPAs </li></ul><ul><li>suggest appropriate CER bundling strategies </li></ul><ul><li>Help in assessment of CER flows </li></ul><ul><li>Platform for aggregating/selling CER </li></ul><ul><li>Securitize future CER cash flows </li></ul><ul><li>Structure & Provide “Carbon” guarantees / credit enhancement </li></ul><ul><li>Provide advisory services for raising debt / equity financing against CER flows </li></ul>Carbon advisory and financing based on future CER cash flow to a biodiesel developer & manufacturer in India
  9. 9. Clean Technology Mandates – Some Example The collaborative use of Windlab’s Advance Technology to boost the Indian sustainable Energy Segment To Enable Exclusive Strategic and Financial Advisor for Windlab in India Market understanding Identifying JV partners Entry Strategy for India Partnership structures Close off partnership deals Arrange Debt/Equity financing for Wind energy projects
  10. 10. Clean Technology Mandates – Some Example To Enable The enable the development of commercially viable clean technologies Exclusive strategic and private placement advisor for Australian Solar Technology Company Developing detailed business model – Technology development and commercial strategy Building on strong network to identify VC and Strategic investors Funding Strategy for business model Developing Equity placement Structures Handholding the company in future strategic/financial initiatives Assisting the company in finding key JV partners for commercialization
  11. 11. Private Equity Group
  12. 12. YES Bank – PE Structure Size: USD 300 mm Geographic Focus: South Asia Investment Size: $3-15 mm India Infrastructure fund expected to raise up to USD 750 mm Size : USD 100 mm Geographic Focus : India Investment Size: USD 3-7mm Venture Capital fund Size: USD 75-100 mm Geographic Focus: South Asia Investment Size: upto 3 mm Clean Energy / Technology Fund Yes Bank Ltd - Advisory Services Infrastructure Group Real Estate Group Asset Recons- truction Group Sustainable Investment Banking Group Chinese Wall YES Bank - GP Infrastructure Fund Food and Agri Business Fund SRI Fund
  13. 13. Introduction: SACEF Key Highlights South Asia Clean Energy Fund (SACEF) targets investments in equity or related instruments in the clean energy and technology businesses in South Asia Clean energy and technology Focus Sectors Commitment period – 5 years GEF and YBL Fund Sponsor Remaining life – 5 years with two 1 year extension periods Fund Life USD 5.0 million Minimum Investor Commitment USD 15 million in a single portfolio company Investment Cap USD 3.0 - 15 million Size of Investment USD 300 million Size of Fund
  14. 14. Introduction: Venture Capital Fund (Under Development) Key Highlights The VC Fund would focus on supporting entrepreneurs and small businesses with carefully evaluated social, commercial and sustainable business models having the potential to offer scalable solutions to prevalent social issues Water & Energy, Health, Education Agriculture and Micro-livelihoods Focus Sector Commitment period – 6 years YBL and Partner Fund Sponsor Remaining life – 4 years with one 2 year extension periods Fund Life USD 1.0 million Minimum Investor Commitment 10% in a single portfolio company Investment Cap USD 0.5 - 3.0 million Size of Investment $100 million Size of Fund
  15. 15. Awards & Recognition - Sustainability Initiatives <ul><li>Best Corporate Social Responsibility Practice Award, Social and Corporate Governance Awards 2007 </li></ul><ul><li>In recognition of innovative strategies to implement CSR practices within the business focus of the Indian Corporate sector. </li></ul><ul><li>Trade Finance ‘Deal of The Year’, 2007 </li></ul><ul><li>In recognition of innovative structured rural financing solutions. </li></ul><ul><li>YES Bank earned this award by providing loans to nomadic honey bee farmers in the state of Jammu & Kashmir, facilitating their financial inclusion. YES BANK is the only Indian private sector Bank to have won this award as the lead arranger. </li></ul><ul><li>Environment Leadership Award </li></ul><ul><li>In recognition of outstanding contributions made through working in partnerships to improve the environment and quality of life for the people of Asia. </li></ul><ul><li>Emerging Markets sustainable bank of the year 2008 </li></ul><ul><li>Emerging Markets Sustainable Bank of the Year Award for excellence in creating environmental, social and financial value across its operations </li></ul>
  16. 16. +91 9820782475 [email_address] Principal – South Asia Clean Energy Fund Vivek Ganguly + 91 9833287150 [email_address] Assistant Vice President – Private Equity & Financial Sponsor Advisory Ashutosh Jaiswal +91 99870 55774 [email_address] Vice President – Sustainable Investment Bank Rajnesh Trivedi +91 99676 61008 [email_address] Country Head Vivek Mehra Key Contacts
  17. 17. Thank You