Yes Bank has announced that it would be raising up to Rs 1,100 crore in 2008-09, through a combination of debt and equity routes. While the bank would look at raising anywhere between $150-170 million through a qualified institutional or private placement between April and June. The balance amount would be raised through multiple tranches in the debt market later by September.
YES Bank has already entered into talks with banks and private equity players to effect this fund-raising. Under the equity issue, the bank will be issuing 20 million fresh shares to the new investors, diluting the promoters’ stake further by 6.3%.
Speaking to mediapersons on the sidelines of a press conference, YES Bank managing director and CEO, Rana Kapoor said, “Global Orients, a Singapore-based financial institution led by Richard Chandler picked up a 4.99% stake in the bank in December, for Rs 331 crore. We are now in talks with investment arms of two multinational banks, one which already has presence in India. We are also in discussions with few private equity arms and are looking at a strategic investor, not a strategic partner.”
Mr Kapoor added that the funds raised would be used for setting up new branches, as the bank is targeting to have 250 branches in place by 2010. It would also help the bank raise the exposure limits both for single and group borrowers, he added.
YES Bank would be raising another Rs 500 crore through a Tier-II debt issuance (both lower and upper tier-II). The bank has a capital adequacy ratio of 14.5% as on December 2007. YES Bank posted a 116% jump in its net profit at Rs 54.2 crore for the December quarter, as against Rs 25.1 crore in the corresponding period last year.
With the bank’s non-performing assets (NPAs) at nil, its net interest income jumped 81.5% at Rs 93 crore against Rs 51.3 crore in the same period last fiscal while non-interest income zoomed 124% to Rs 97 crore from Rs 43.3 crore in the year-ago period.
The bank, on Wednesday, signed a memorandum of understanding (MoU) with Alterra BV, Wageningen, a part of the Wageningen University and Research Centre (WUR) in Netherlands.
As per the MoU, the bank and Alterra will create agro-food parks and agro logistic networks, together with third parties. Fertiliser co-operative, IIFCO, in partnership with Hyderabad-based company, GreenPort Corporation, are developing India’s largest integrated food park at Nellore in Andhra Pradesh. The park is expected to be commissioned in 2010, while the initial cost is projected to be around $600 million.
Yes Bank and Alterra, Wageningen University of Netherlands who are the partners with GreenPort Corporation will also be a part of the food park project.
Source: Economic Times