Source: New Kerala.
Original article available online.
NEW DELHI, September 14 – Private sector lender Yes Bank today said it plans to raise up to Rupees 500 crore by way of subordinated debt by this fiscal-end, and as part of this, it has entered into an agreement with French financial institution Proparco to raise Rupees 95 crore (20 million dollars).
The instrument has a maturity of 15 years with a call option with the Bank at the end of 10 years from the date of subscription.
The subordinated debt will help the Bank further augment its tier-II capital base, capital adequacy ratio and enhance its long-term resources.
On the successful completion of the transaction, Mr Rana Kapoor, Bank Managing Director & CEO said, ”This significant commitment from one of the finest long term multilateral institutions for EU’s leading country France is a reinforcement of our unique financial and business model.” The financing will also help the Bank strengthen its Capital Adequacy Ratio further from the present 17.6 per cent and pursue growth path, especially in the Sustainable Banking space, he added.
Commenting on the development, Proparco Chief Executive Officer Luc Rigouzzo said the focus areas in India for the French financial institution are clean energy, microfinance, health and education.
Yes Bank is the first Indian Bank to raise capital from Proparco, the private sector investment arm of Agence Française de Developement (AFD), the leading French multilateral development finance agency.
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