Yes Bank raises Rs 182cr via private placement

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 to
retain  the  entire  amount  of  over-subscription.  The  bank  received
subscription  for  the entire issue including the greenshoe option of  Rs
132 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 augment
the  tier- II  capital base for strengthening capital adequacy and
enhancing  the  long-term  resources of the bank. We attribute  this
extremely  well-received subscription to an expanding investor base  and
their confidence in the business and financial model of our bank."

The  equity  and debt capital raising initiatives are a part of the bank's
overall 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).