Yes Bank raises Rs 665 crore from bond issues

Private sector lender Yes Bank on Monday said it had raised Rs 665 crore of capital through two bond issues. The bank raised Rs 225-crore of perpetual Tier-I capital.

The capital was raised through a private placement issue of unsecured, non-convertible subordinated bonds in the form of promissory notes.

The issue was over-subscribed by leading public sector banks, pension funds and corporate, the bank said in a statement. Another Rs 440-crore of Upper Tier-II subordinated debt was placed with the Life Insurance Corporation (LIC).

This placement has a tenor of 15 years. LIC’s total holding of Yes Bank’s subordinated 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.

Rana Kapoor, Yes Bank’s managing director and CEO said, “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.”

With this, Yes Bank’s total capital funds have gone up to around Rs 6,000 crore.