Raises INR 2135 Crores (including green shoe of INR 1135 Cr)
Mumbai, October 04, 2016: YES BANK, India’s 5th largest private sector Bank, has successfully raised INR 2135 Crore of Senior Long-term Infrastructure Bonds. The issue was rated ICRA AA+ by ICRA and CARE AA+ by CARE.
The issue closed on Friday, September 30, 2016 and witnessed strong demand from leading domestic investors including several Insurance companies, Asset Management Companies, Corporates, Pension Funds, Provident Funds and Gratuity Funds, resulting in a total subscription of INR 2135 Crores. The bonds will be listed on the Bombay Stock Exchange (BSE) and were raised at a coupon rate of 8% per annum, with a tenor of 10 years. The proceeds from the Infrastructure Bonds will be used to finance long term projects in Infrastructure and its allied sub-sectors, in accordance with the guidelines issued by the Reserve Bank of India.
The issue garnered INR 2135 crores against a base issue size of INR 1000 crores, with INR 1135 crores raised via exercising of the Green shoe option. This is the single largest issuance of Infrastructure Bonds by YES BANK till date.
On the successful completion of the issuance, Mr. Rana Kapoor, Managing Director & CEO, YES BANK said, “The strong demand for our Infrastructure Bonds by multiple esteemed Indian Institutions exemplifies the investment interest by a diverse set of stakeholders, and their conviction in YES BANK’s financial and business strategy, and its seamless execution. YES BANK will use the proceeds to finance projects in the infrastructure sector and its recent thrust on affordable housing as a part of the overall retail strategy.”
The Bond issue comes on the back of YES BANK’s definitive agreement with FMO, the Dutch Development Bank, Netherlands to issue INR 330 Crores of Green Infrastructure Bonds, marking FMO’s 1st investment in a Green Infrastructure Bonds in India.
About YES BANK
YES BANK, India’s fourth largest private sector bank is a high quality, customer centric and service driven Bank. Since inception in 2004, YES BANK has grown into a ‘Full Service Commercial Bank’ providing a complete range of products, services and technology driven digital offerings, catering to corporate, MSME & retail customers. YES BANK operates its Investment banking, Merchant banking & Brokerage businesses through YES SECURITIES and its Mutual Fund business through YES Asset Management (India) Limited, both wholly owned subsidiaries of the Bank. Headquartered in Mumbai, it has a pan-India presence across all 28 states and 9 Union Territories in India including an IBU at GIFT City, and a Representative Office in Abu Dhabi.
For more information, please visit the Bank’s website at http://www.yesbank.in/
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