YES Bank to raise Rs 95 cr tier II capital from French finance agency

YES Bank, new private sector bank, has inked pact with Proparco, French financing agency, to raise $20 million (Rs 95 crore) capital through subordinated bonds to enhance capital adequacy.

YES Bank is the first Indian Bank to raise capital from Proparco, the private sector investment arm of Agence Française de Développement (AFD), the leading French multilateral development finance agency.

The upper tier II bonds will have a maturity of 15 years with a call option at the end of 10 years from the date of subscription, Yes Bank said in a statement today. The transaction was structured and led by the YES International Banking wing.

The private bank intends to raise up to Rs 500 crore by way of subordinated debt forming part of Upper and Lower Tier II capital by end of March 2010. Its capital adequacy at the end of June 30, 2009 was 17.63 per cent
 
Rana Kapoor, Founder/Managing Director & CEO said, “This capital raising has been done to further augment our Tier II capital base and our capital adequacy and enhance the long-term resources of the Bank.”

Bank stock is trading at 176.40, up from previous close of Rs 174.95 on the Bombay Stock Exchange.