Private sector lender Yes Bank on Wednesday said its board has approved proposal to set up MTN programme to raise $1 billion (about Rs 6,500 crore) on private placement basis.
The Medium Term Note (MTN) programme, an instrument to raise money through debt securities that typically mature in 5-10 years, is within the overall borrowing limit of Rs 20,000 crore, the bank said.
"The Capital Raising Committee of the board at its meeting held on November 29, 2017 has considered and approved bank's proposal to set up the MTN programme for an amount of $1 billion to eligible investors, from time to time, in one or more tranches," Yes Bank said in a regulatory filing.
The bank can raise money, in Indian or foreign currency through various means, including the issuance of debt securities such as non-convertible debentures, MTNs, tier I/II bonds, as well as long-term infrastructure bonds.
As per approval from its board of directors and shareholders, the bank has permission to raise funds up to Rs 20,000 crore in one or more tranches on private placement basis from time to time.
Shares of Yes Bank closed 0.92 per cent down at Rs 312.30 per unit on BSE today.