Mumbai, Feb. 16: Yes Bank today said it would raise Rs 500 crore through the issue of 'green infrastructure bonds' and the proceeds would be used to fund renewable energy and energy-efficiency projects.

According to the lender, this is the first such issue in the country and the money will be used to fund solar power, wind power, biomass, and small hydel projects.

The bond will have a tenor of 10 years, the bank said in a statement, adding the issue has already been launched.

The private bank has raised $1.2 billion so far this financial year through various transactions.

In May, the bank raised $500 million through a qualified institutional placement. It raised another $422 million by way of a syndicated loan facility in October and a $200-million loan from the Asian Development Bank in December.

Yes Bank said $35 billion have been raised globally through green bonds in 2014. However, the market is either non-existent or nascent in the country.

Given the long-term gestation of such projects, the bonds are useful in taking care of any potential asset-liability mismatches, it added.

The lender said it had made a commitment to fund 5,000 megawatt of renewable energy projects at a recent summit organised by the government.