This is the largest debut international bond issuance by an Indian bank
YES BANK has been the largest contributor to GIFT City’s Business which crossed USD 2 Billion as on December 2017
YES BANK’s new IFSC office at Hiranandani - Signature Towers, GIFT City also inaugurated today
Ahmedabad, February 14, 2018: YES BANK, India’s fourth largest private sector bank has announced the listing of the Bank’s debut USD 600 million bond issue under its maiden USD 1 billion MTN programme on Global Securities Market (“GSM”), India’s first capital raising platform for international investors in any currency, located at the Gujarat International Finance Tec City (“GIFT City”) IFSC.
The listing ceremony was presided over by Shri Vijaybhai R. Rupani, Hon’ble Chief Minister of Gujarat.
The MTN bonds issuance received an overwhelming response from international investors and saw a final order book, at a spread of 130 basis points, being oversubscribed by >1.83x from over 90 accounts. In terms of investor type, the split was 46% to asset managers, 38% to banks, 11% to insurance companies and 5% to private banks. In terms of geographic distribution, Asian accounts received 58% of the allocation, EMEA received 41% and offshore US accounts received 1%. The Bond is also listed on the London Stock Exchange International Securities Market (LSE ISM) and the Singapore Exchange Securities Trading Limited (SGX).
Shri Vijaybhai R. Rupani, Hon’ble Chief Minister of Gujarat also inaugurated YES BANK’s new IFSC office at Hiranandani - Signature Towers, GIFT City in the presence of Shri J.N. Singh, Chief Secretary, Government of Gujarat, Sudhir Mankad, Chairman, GIFT City, Maheshwar Sahu, Chairman, GIFT SEZ Ltd., J.K. Dash, Regional Director, RBI and Ajay Pandey, MD & CEO, GIFT City.
Commenting on this occasion, Rana Kapoor, MD & CEO, YES BANK, said, “YES BANK will use the proceeds to fund the bank’s IFSC Banking Unit (IBU) in Gift City and expand IBU’s rapidly growing business opportunities. IFSC received a major boost in the Union Budget with the proposed unified regulator and enabling tax benefits. YES BANK remains committed to the Government of India’s vision of making India the preferred destination for investments.”
Commending YES BANK on the event, Shri S. Ravi, Chairman, BSE said, “IFSC at GIFT City has received new impetus in Union Budget this year. This will increase the momentum of growth and would attract the best of the global investors to consider IFSC in India to invest and trade in world’s fastest growing economy. As the oldest bourse from Asia, BSE is excited to bring to global issuers and investors India’s first international fund raising platform, Global Securities Market, which offers the very best in transparency.”
Welcoming the first bond issuance of YES BANK under its USD 1 Bn MTN programme, V. Bala, MD and CEO, India INX said, “Yet again we have partnered with YES BANK in issuance and listing of USD600 million bonds. We congratulate YES BANK for the overwhelming response they received across investor segments and the attractive pricing. We are clearly observing an uptick in the interest that IFSC in India is gathering for its product basket from foreign players.”
Commenting on the development, Ajay Pandey, MD & Group CEO, GIFT City, said, “GIFT IFSC is achieving new milestones every day and it has emerged as a preferred offshore financial centre in short span. We have witnessed continuous support from Government of India and all regulators to make GIFT IFSC a great success. YES BANK and India INX have been few of our most valuable partners, YES BANK being the first bank and India INX being the first international exchange to start operations in GIFT IFSC. We are happy to see that they are utilising business opportunities presented to them at GIFT IFSC in all possible ways. We congratulate them on their listing and we hope that the business transactions at GIFT IFSC will see multiple jumps in the coming days.”
YES BANK has continued its leadership at GIFT City IFSC as the 1st IBU to have started operations in October 2015. With this, the Bank has demonstrated its ability to leverage newer geographies and currencies to fund the bank’s expanding franchise at YES BANK’s International Business Unit (IBU) at the GIFT City. YES BANK’s IBU also continues to be the largest amongst the operational IBUs with Balance Sheet size crossing USD 2 Billion as on December 2017.
About India INX
India INX, a wholly-owned subsidiary of BSE Ltd, commenced its trading activities on January 16, 2017 and is India’s first International Exchange set up at GIFT City. It is one of the world’s most advanced technology platforms with a response time of 4 micro seconds and operates for 22 hours a day to allow international investors to trade from anywhere across the globe. The exchange provides a common platform for all asset classes - equities, currencies, commodities. The exchange also offers a primary market platform for debt securities and proposes to offer additional fund raising facilities like depository receipts once the required infrastructure is in place.
India INX offers a diversified portfolio of products and technology services at a cost which is far more competitive to Indian exchanges as well as other global exchanges like those in Hong Kong Singapore, Dubai, London and New York. The exchange being located in IFSC, GIFT City, provides competitive advantage in terms of tax structure and supportive regulatory framework. These include benefits in security transaction tax, commodity transaction tax, dividend distribution tax and long-term capital gain tax waivers and no income tax.
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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/