Yes Bank today announced that it has raised Rs182 crore ($45.5 million) of upper tier- II subordinated debt through private placement. The size of the issue was Rs 50 crore ($12.5 million) with an option toretain the entire amount of over-subscription. The bank receivedsubscription for the entire issue including the greenshoe option of Rs132 crore ($33 million).The bonds were rated LA+ by ICRA and A+ by CARE, and have a maturity of 15 years carrying a coupon rate of 10.7% per annum.The issue was structured and led by the Debt Capital Markets and Financial Institutions Groups of the bank headed by Ajay Mahajan, Group President - Financial Markets, Institutions and Investment Management. Investor participation in the issue included 16 leading domestic institutional investors.Mahajan said: "The private placement of bonds has been made to augmentthe tier- II capital base for strengthening capital adequacy andenhancing the long-term resources of the bank. We attribute thisextremely well-received subscription to an expanding investor base andtheir confidence in the business and financial model of our bank."The equity and debt capital raising initiatives are a part of the bank'soverall plan to raise up to Rs 840 crore ($210 million). The bank proposes to raise Rs 450-500 crore ($120 million) through primary issuance of 20 million shares either through private placement or a QIP. The balance capital will be raised from perpetual debt instruments forming part of tier-I capital up to Rs 116 crore ($29 million) and lower tier-II capital up to Rs 100 crore ($25 million).
