Digital Assets in Capital Markets

Advanced course on digital assets - assets created using a blockchain/DLT network - designed for finance professionals.

IBF-STS
8 CACS CPD Hours

29 September 2022 (Thursday) | 9am-5pm

Yes Bank is expected to approve JC Flowers as the buyer for its $6bn distressed loan portfolio, as per sources. The lender’s credit committee is likely to meet on September 15 to give approval to the private equity company. Another bidder, a consortium led by private equity firm Cerberus Capital and Asset Reconstruction Company of India (ARCIL) withdrew their bids which were supposed to be submitted by September 7, after having earlier submitted their expression of interest as a consortium. JC Flowers had submitted a bid of INR 111.8bn ($1.4bn) for the lender’s INR 480bn ($6bn) stressed portfolio. The deal will be 15:85 structure which means that 15% will be paid in cash and 85% in security receipts. JC Flowers ARC needs to pay INR 16.8bn ($210mn) within 60-days of the deal’s approval and if it does not, its ‘earnest money deposit’ of INR 4bn ($50mn) could be forfeited as per auction rules if failed to pay in given time. In July, Yes Bank had decided to run the bidding process on a ‘Swiss Challenge’ method to become a ‘zero-NPA’ bank for the sale of its stressed portfolio by using JC Flowers ARC’s base bid. The bank previously said that the sale of bad loans will reduce its gross non-performing loans (GNPA) to 2% of the total loan portfolio from 13.4% as of 2Q 2022.

Yes Bank’s USD 3.75% 2023s were down 0.2 points to 98.94, yielding 6.49%.

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