YES Bank has signed a 12-month agreement with Australia-based Windlab Systems for providing financial advisory services to foster the renewable energy sector in India. The bank is expected to facilitate Windlab System’s business interests in India through debt financing, private equity participation, and forging the company’s associations with local partners to build a portfolio of wind projects in the country.
Somak Ghosh, group president – corporate finance and development banking, YES Bank said, “In the next 12-18 months, YES Bank expects to facilitate at least four joint ventures between Windlab Systems and Indian companies. The cumulative investment into these four projects, each of around 50 MW power capacity, is envisaged at about Rs 1,000 crore.” Ghosh said YES Bank anticipates to earn fee income worth 1-1.25% of the total cost of projects through rendering the advisory-cum-facilitation services to Windlab Systems and its Indian partners. For the quarter ended June 30, 2008, the bank’s fee-based income accounted for 45% share of its total income. Income from financial advisory services contributed 36% share to the 45% fee-based income share of the total income.
YES Bank intends to hold around 30-35% stake in its proposed $300 million worth south Asia-focussed clean energy-cum-clean-technology fund that is expected to announce its first investment by the end of the current fiscal.