Auto Segment
Mutual Fund Segment
My Budget
Expert Speak
In Association With
Business Standard

YES Bank set to approach overseas development funds

Related News

Private lender plans to of $75-100 million from overseas development finance institutions in the current financial year. The proposed funding would supplement the lender’s plans of raising Rs 750-1,000 crore from the domestic market through the issue of upper and lower with maturity periods of 10-15 years.

The bank also announced its plan to raise up to $500 million in one or more tranches in the latter half of this financial year. This would be raised through either qualified institutional placement (QIP), American depository receipts (ADRs) or global depository receipts (GDRs).

In September 2009, YES Bank raised upper tier II capital of $20 million from Proparco, the private sector investment arm of French development finance institution, Agence Francaise de Developpement. The bank raised debt of ¤20 million from DEG, a member firm of Germany’s development finance institution, KfW Bankengruppe, in October 2009. YES Bank also availed of a $25-million term loan from US-based Wells Fargo Bank in 2010.

“These were fairly unique, small-ticket transactions. They have enabled us to open doors with key long-term fund providers, offering either quasi capital or long-term debt capital. We endeavour to work with more institutions like these and increase the ticket size,” Rana Kapoor, founder, managing director and chief executive officer, YES Bank, told Business Standard. He said these funds were generally used to finance the bank’s small and medium enterprise clients.

Rana Kapoor“We would probably target $75-100 million through this route in 2011-12. This would be international bilateral funding,” Kapoor said, adding the bank was adequately capitalised for the next 12-18 months, but would require additional funding to support its plans for growth.

“The last time we raised capital was in January 2010. With our current growth rate, we would certainly need capital. We would consider all possible options. It could be the good old like the last time. We are also examining the pros and cons of and GDRs,” he said.

As part of the second phase of the bank’s growth (titled Version 2), YES Bank plans to have 750 branches, 3,000 automated teller machines and 12,000 employees by 2015. The bank also plans to expand its deposit base to Rs 1,25,000 crore, its loan book to Rs 100,000 crore and its balance sheet size to Rs 1,50,000 crore during this period.

Read more on:   

Read More

Blackstone bets on low-risk realty assets

For its investments in the Indian real estate, Blackstone seems to follow adage “slow and steady wins the race” quite ardently.Till 2011, the real ...

Recommended for you

Quick Links

More news from Finance Rss icon

RBI advises PSBs feeling capital constraints to focus on less risky assets

Say they have to figure out ways of raising capital from the market or any other methods including additional tier I and tier II instruments

Moody's downgrades IOB, Central Bank's deposits

Says standalone credit quality more important for ratings; assumes lower support form government

Bond yields rise to seven-week high

Yield on 10-year benchmark bond ended at 7.76% on Tuesday compared with previous close of 7.74%

Back to Top