Mumbai-based private sector lender Yes Bank plans to raise $250 million through a combination of private placement of shares and bonds issue by end of March 2010. The company will raise $150 million through the private placement route and the remaining amount via a bonds issue.
The bank has already entered into an agreement with French multilateral development finance agency Proparco for $20 million as subordinated debt, according to a report in the Times of India.
Quoting Rana Kapoor, MD & CEO of Yes Bank Ltd, the report said, the fund-raising would help the bank augment its capital base. The bank has a capital adequacy ratio of 17.6% against the statutory requirement of 9%.
“The bank has around Rs 1,725 crore as tier I and Rs 1,430 crore tier II capital, making a total capital base of Rs 3,160 crore. Post fund-raising, the bank’s capital will be increased to around Rs 4,500 crore, including the profit for 2009-10,” the report said, quoting Kapoor.
In March 2004, Yes Bank raised Rs 21 crore from Chrys Capital, which exited in 2007 at an exit value of around Rs 230-280 crore or 11-13x returns in three and half years.
The bank has operations in corporate and institutional banking, financial markets, investment banking, corporate finance, business and transaction banking, retail and wealth management business lines across the country. It also plans to foray into retail broking business in the next six months.
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