Yes Bank has signed a binding term sheet to partner with US-based JCF ARC LLC and JC Flowers Asset Reconstruction Private Limited (JC Flowers ARC) for the sale of its identified stressed loans or NPAs. JC Flowers will be the base bidder for a proposed sale of an identified stressed loan portfolio of INR 480bn ($6bn). The bank will run the bidding process on a ‘Swiss Challenge’ method to become a ‘zero-NPA’ bank for the sale of its stressed portfolio using the JC Flowers ARC’s base bid. A Swiss Challenge method is a process of giving contracts where any person with credentials can submit a development proposal to the government. That proposal will be made online and a second person can give suggestions to improve and beat that proposal. Then an expert committee will accept the best proposal and the original proposer will get a chance to accept it if it is an improvement on his proposal. As of March 2022, Yes Bank had INR 279.8bn ($3.5bn) in gross non-performing assets accounting for 14% of gross advances.
Yes Bank’s USD 3.75% 2023s was down 0.11 points to 98.43, yielding 6.74%.
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