Yes Bank announced on Tuesday that they are awaiting the board’s approval to raise Rs.20,000 crore via bonds. They said that the bonds can be issued in both the local as well as foreign currency.
In a regulatory filing, the bank said, “The capital raising committee of the board would consider the proposal to raise funds by issuing debt securities on private placement basis, including the term of the issue in the nature of Basel III tier-II bonds on or after September 29.”
Furthermore, the bank has mentioned that they have received all the approvals required to borrow or raise funds in foreign or Indian currency. They can issue debt securities including non-convertible debentures. However, they are not limited to this.
The bank may also issue other instruments such as medium term notes, bonds, long term infrastructure bonds, or any other security.
The bank stated, “The shareholders approved through special resolution the proposal to borrow/raise funds in Indian/foreign currency by issue of debt securities including but not limited to non-convertible debentures, medium term notes and bonds up to a total amount of Rs.20,000 crore.”
In FY 2016-17 the bank had underreported non-performing assets by over Rs.4000 crore which led to the central bank directing Yes Bank to disclose the ‘Divergence’. This had raised concerns with the investors.
Currently, the bank is now looking to raise the money after attaining all the required approvals and hopes to raise it in one or more tranches through private placement. They haven’t announced a time-frame for it however.