Yes Bank said it had successfully raised Rs 2,135 crore by placing long-term infrastructure bonds.
The issue garnered Rs 2,135 crores against a base size of Rs 1000 crores, with Rs 1135 crores raised via exercising of the green shoe option.
This is the single largest issuance of Infrastructure Bonds by Yes Bank till date.
“The issue closed 30 Sept (Friday) witnessed strong demand from leading domestic investors including several Insurance companies, Asset Management Companies, Corporates, Pension Funds, Provident Funds and Gratuity Funds, resulting in the subscription,” said the bank.
The bonds were raised at a coupon rate of 8% per annum, with a tenor of 10 years. The issue was rated ICRA AA + by ICRA and CAREAA+ by CARE.
The proceeds from the Infrastructure Bonds will be used to finance long term projects in Infrastructure and its allied sub-sectors, in accordance with the guidelines issued by the Reserve Bank of India.
Rana Kapoor, Managing Director & CEO, Yes Bank said, “Yes Bank will use the proceeds to finance projects in the infrastructure sector and its recent thrust on affordable housing as a part of the overall retail strategy.”
The Bond issue comes on the back of Yes Bank’s definitive agreement with FMO, the Dutch Development Bank, Netherlands to issue Rs 330 Crores of Green Infrastructure Bonds, marking FMO’s 1st investment in a Green Infrastructure Bonds in India.
Yes bank is India’s fifth largest private sector Bank with a pan India presence across all 29 states and 7 Union Territories of India.
It was founded by Rana Kapoor in 2004.