Yes Bank raises $600 million by issuing international bonds

0
471

Private sector banking firm Yes Bank has raised $600 million by successfully issuing US dollar bonds in the London Stock Exchange’s International Securities Market (ISM). With this fundraising, Yes Bank became the first ever private sector Indian Bank to successfully raise money through international bonds.

Yes Bank

This issue has been oversubscribed by about 1.83 times from about 90 accounts. The bonds come with a tenor of 5 years and have a rating of Baa3 from Moody’s Investor Service.

The issue is a part of Yes Bank’s $1 billion Medium Term Note (MTN) programme. The bonds issued by Yes Bank has generated interest from various international investors. As far as allocation is concerned, 58% of the takers were from Asia and 41% of the investors were from Europe. The remaining 1% of allocation was made to investors from offshore United States. The subscription for these bonds comes with a pricing spread of 130 basis points.

Yes Bank is expected to utilize the generated funds in various business development activities. The bank is currently in the process of developing its IFSC Banking Unit (IBU) in GIFT City (Gujarat International Finance Tec-City). The funds generated in this process will be used to explore business opportunities for the IBU.

Just a few days ago, Export-Import (EXIM) Bank of India raised $1 billion by issuing international bonds at London Stock Exchange’s ISM. This issue by Yes Bank follows the footsteps of EXIM Bank.

According to Rana Kapoor, MD & CEO of Yes Bank, this first foreign currency bond offering by Yes Bank is a landmark issue. He added that the oversubscription to this issue represents the commitment of global investors to the bank.

In September 2017, Yes Bank announced that its board has approved the proposal to raise funds to the tune of Rs.20,000 crore. In its earlier statement, the bank said that it is looking forward to raise funds by issuing bonds in local as well as foreign currency.

LEAVE A REPLY

Please enter your comment!
Please enter your name here