YES BANK's 1st USD Bond of $600 Mn Raised from International Markets

YES BANK's 1st USD Bond of $600 Mn Raised from International Markets
YES Bank Tower

YES BANK Raises 600 MN USD, becomes 1st Bank in India to Issue Largest Debut International Bond; ~1.8x oversubscription

Remarkable Business Growth with a Consistently Successful Fund Raising Streak in Markets Globally

India's fourth largest private sector bank, YES BANK has successfully completed issuance of its first USD 600 million (more than Rs. 3,847 crore) bond issue in the international debt markets. The Bond issuance is for a tenor of 5 years and is rated Baa3 by Moody's Investors Service and is listed on the London Stock Exchange International Securities Market (LSE ISM), the Singapore Exchange Securities Trading (SGX), and the India International Exchange IFSC at GIFT City, Gandhinagar.

This is the largest debut International bond issuance by an Indian bank with a lowest spread over Treasury for a debut fixed rate, issued as a part of the Bank's USD 1 BN Medium Term Note (MTN) programme. The issue was also oversubscribed by >1.83x from over 90 accounts.

According to a Press Release issued by the company, YES BANK is the first bank out of GIFT City, Gandhinagar to launch MTN issuance, and continues to be the largest amongst the operational International Business Units (IBUs) with Balance Sheet size crossing USD 2 Billion.

Commenting on the development Mr. Rana Kapoor, MD & CEO, YES BANK, said, "This landmark issue is the first foreign currency bond offering by YES BANK under our newly established MTN program, and the significant over-subscription as well as high quality investor base is testament to the commitment reposed by global investors in the Bank. As the 1st Bank to have begun operations at GIFT, we remain committed to expanding our operations at the IBU, Gandhinagar."

In its successful fund raising streak, YES BANK has previously raised a total of INR 37.5 Bn of Infrastructure bonds of which INR 3,300 Mn (USD 50 Mn) was raised through issue of Green Infrastructure Bond to FMO.

In FY17, YES BANK was one of the best performing banks in India across key parameters of growth, profitability and asset quality owing to a differentiated strategy. Bank's Advances grew by 34.7% to INR 1,323 Bn compared to industry growth rate of 5.4%, Total Assets grew by 34.7% to INR 2,151 Bn and Net profit grew by 31.1% to INR 33.3 Bn.

Further, YES BANK emerged as the fourth most profitable bank in India, as per H1FY18 net profit of INR 19.7 Bn.

As on March 31, 2017, YES BANK's Total Capital Adequacy Ratio stood healthy at 17% with Tier I Capital at 13.3%, ensuring that the Bank is well positioned to capitalize on growth.

As evidenced, YES BANK has been one of the strongest banks in India to have successfully demonstrated ability and consistency in raising capital across cycles. Through the equity route too, the Bank has raised a total of more than INR 200 Bn.

  • The Bank has raised a total of INR 78.5 Bn (USD 1.2 Bn) in QIPs since 2014
  • Recently raised  INR 40 Bn (USD 612 Mn) through private placement of Basel III Tier II bonds
  • INR 84.15 Bn was in total raised under Basel III Compliant Additional Tier-1 ('AT1') Bonds