Yes Bank gains after raising funds from IFC

Yes Bank rose 2.36% to Rs 379.20 at 13:09 IST on BSE after the bank said it has raised $150 million from International Finance Corporation, Washington, a member of the World Bank Group, for tenor of up to 7 years.

The announcement was made during trading hours today, 23 December 2013.

Meanwhile, the S&P BSE Sensex was up 61.98 points or 0.29% at 21,141.70.

On BSE, so far 2.89 lakh shares were traded in the counter as against average daily volume of 16.25 lakh shares in the past one quarter.

The stock hit a high of Rs 381 and a low of Rs 371.10 so far during the day. The stock had hit a record high of Rs 547.15 on 20 May 2013. The stock had hit a 52-week low of Rs 216.10 on 28 August 2013.

The stock had underperformed the market over the past one month till 20 December 2013, advancing 1.41% compared with the Sensex's 2.15% rise. The scrip had also underperformed the market in past one quarter, gaining 3.99% as against Sensex's 4.03% rise.

The large-cap private sector bank has equity capital of Rs 360.56 crore. Face value per share is Rs 10.

Yes Bank said that the loan will be used by the bank to scale up its small and medium enterprise loan portfolio.

The financing package to Yes Bank includes $45 million provided through IFC's new co-lending program in addition to IFC's own account loan of $60 million, both for a period of 7 years; and another $45 million syndicated loan provided by Intesa Sanpaolo, Bank Muscat, Doha Bank & AKA Frankfurt for a tenor of 2 years. Yes Bank said it has swapped the said loan with RBI through the concessional swap window offered to banks.

Yes Bank said it is the first institution globally to receive funding through IFC's Managed Co-Lending Portfolio Program and also the first Indian bank to raise loan under IFC's A/B loan facility. The loan facility would be used by the bank to scale up its SME Loan portfolio, it said. The IFC Managed Co-Lending Portfolio Program is a new syndications platform that offers institutional investors the ability to passively participate in IFC's future senior loan portfolio.

On the successful completion of the transaction, Mr. Rana Kapoor, Managing Director & CEO, Yes Bank, said, "Through this significant foreign currency loan and long tenor facility, we aim to achieve our longer term goals of further reaching out, diversifying and expanding our SME loan book. The facility demonstrates Yes Bank's ability to draw long tenure funds from global banks and institutions who have partnered IFC under this loan facility, reiterating our demonstrated financial and business model, and the faith reposed in the management team by one of the largest and finest global financial institution".

Yes Bank's net profit rose 21.3% to Rs 371.13 crore on 30.2% growth in total income to Rs 2947.39 crore in Q2 September 2013 over Q2 September 2012.

Yes Bank is one of the leading private sector banks in India.

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