YES Bank has raised Rs380 crore in debt from International Finance Corp ( IFC) and revived its plan to raise $400 million in share sale in the European markets as investors' risk appetite returns after the European crisis appears to have eased.
In the last quarter, the bank had raised Rs830 crore through debt issuances. It raised Rs380 crore of hybrid debt from IFC. The 15-year issue was raised at a coupon of 482 basis point over Libor. A basis point is 0.01%.
'This is long-term money and cost-efficient. We received the money on March 29. The bank's capital adequacy will be over 16% following this issue,'' said Rana Kapoor, managing director and chief executive officer, Yes Bank.
The bank that's one of the fastest growing has also revived its plans to raise funds through an equity issue.
'We had taken the board's approval to raise capital, but since the markets were bad, we did not go ahead with the plan. In the next board meeting scheduled in April, we will take an enabling provision to raise equity capital of about $400 million through issue of global depository receipts and qualified institutional placement,'' said Kapoor.
Volatile global and domestic markets had affected capital raising plans of many financial institutions in 2011. Stock markets have lost more than a tenth of their value in the financial year ended March 2012.
'We would like to grow organically at about 30-35% and fund sunrise sectors like food and agriculture, engineering and infrastructure,'' said Kapoor.
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In the last quarter, the bank had raised Rs830 crore through debt issuances. It raised Rs380 crore of hybrid debt from IFC. The 15-year issue was raised at a coupon of 482 basis point over Libor. A basis point is 0.01%.
'This is long-term money and cost-efficient. We received the money on March 29. The bank's capital adequacy will be over 16% following this issue,'' said Rana Kapoor, managing director and chief executive officer, Yes Bank.
The bank that's one of the fastest growing has also revived its plans to raise funds through an equity issue.
'We had taken the board's approval to raise capital, but since the markets were bad, we did not go ahead with the plan. In the next board meeting scheduled in April, we will take an enabling provision to raise equity capital of about $400 million through issue of global depository receipts and qualified institutional placement,'' said Kapoor.
Volatile global and domestic markets had affected capital raising plans of many financial institutions in 2011. Stock markets have lost more than a tenth of their value in the financial year ended March 2012.
'We would like to grow organically at about 30-35% and fund sunrise sectors like food and agriculture, engineering and infrastructure,'' said Kapoor.
....more info