INSUBCONTINENT EXCLUSIVE:
Private sector lender Yes Bank said Friday it will raise up to Rs 3,042 crore by issuing bonds to comply with Basel-III norms.
The capital
raising committee of the board of the bank Friday approved issuing 30,420 rated listed non-convertible redeemable unsecured Basel-III
compliant tier II bonds of Rs 10 lakh each aggregating to Rs 3,042 crore, Yes Bank said in a regulatory filing.
The issue opening and
closing date is September 14, 2018.
The bonds, set to mature on September 15, 2028, carry coupon rate of over 9.11 per cent payable
annually.
The bonds have been rated AAA and AA+ with stable outlook by Care Ratings and Ind-Ra, which means they carry the highest degree of
safety on timely servicing of financial obligations.
To comply with the global Basel-III capital regulations, banks need to improve and
strengthen their capital planning processes.
These norms are being implemented to mitigate concerns on potential stresses on asset quality
and consequential impact on performance and profitability of banks.
Indian banking system has been implementing Basel-III standards in
phases since April 1, 2013
The banks are expected to fully implement these norms by March 2019.
This will align full implementation of Basel-III in India closer to the
internationally agreed date of January 1, 2019.
Yes Bank shares closed 2.75 per cent up at Rs 323.10 on BSE.
