Yes Bank is close to successfully negotiating a $1bn equity fundraise from private equity firms Carlyle Group and Advent International. Talks had been slow initially because the Indian bank was running an asset reconstruction company (ARC) deal to offload INR 490bn ($6.3bn) of its bad loans from its balance sheet and raise capital to fund increasing demand in credit. However, following the bank partnering with JC Flowers on the ARC deal, the talks for the equity fundraise have accelerated. Yes Bank’s capital strengthening activities have seen an upsurge in recent months. Recently, the lender was said to be seeking approval from its shareholders to raise debt of INR 100bn ($1.3bn) via a private placement. In late May, Yes Bank’s MD Prashant Kumar said that the bank was planning to raise $1bn in the current financial year to strengthen its capital ratios. The $1bn raise was said to strengthen its CET1 ratio from 11.5% as of end-March 2022 to 14.5%, roughly in-line with that of peers at 14-15%.

Yes Bank’s USD 3.75% 2023s were trading flat at 99.3, yielding 4.88%

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