Private sector lender Yes Bank today said it has raised Rs 665 crore through bonds and debt and would use the proceeds to fuel its growth.
The bank raised Rs 225 crore of Perpetual Tier I capital through a private placement issue of unsecured, non-convertible sub-ordinated bonds in the nature of promissory notes.
The issue was over-subscribed by leading public sector banks, pension funds and corporates, a press release issued here stated.
Another Rs 440-crore of Upper Tier II sub-ordinated debt was raised from the Life Insurance Corporation, the bank said.
This placement has a tenor of 15-years. LIC's total holding of Yes Bank's sub-ordinated debt (Upper and Lower Tier II) aggregates to Rs 1,110-crore in addition to their consolidated equity holding of 3.06 per cent in the bank, the release said.
With this, Yes Bank's total capital funds have gone up to around Rs 6,000-crore, significantly augmenting the capital adequacy ratio (around 18.7 per cent based on risk-weighted assets as on June 30) and provides the bank with increased growth opportunities with leading Indian corporate houses.
Yes Bank's Managing Director & CEO Rana Kapoor said that "this capital-raising initiative is another step towards augmenting our next phase of growth--Version 2.0, which is clearly the most stimulating phase in the life-cycle of Yes Bank," Kapoor added.