YES BANK announces capital raise of $1.1Bn from two global private equity investors

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YES BANK announces capital raise of ~$1.1Bn (~ INR 8,900 crore) from two global private equity investors.

 YES BANK today announced raising equity capital of ~$1.1Bn (~INR 8,900 crore) from funds affiliated with two global private equity investors – Carlyle and Advent International, with each investor potentially acquiring upto a 10.0% stake in YES BANK. This will be raised through a combination of ~ $640Mn (~INR 5,100 crore) in equity shares and ~ $475Mn (~ INR 3,800 crore) through equity share warrants.

The capital raise is subject to shareholders’ approval at the EGM of the Bank to be held on August 24, 2022 and relevant regulatory / statutory approvals.

The capital raise will further bolster the capital adequacy of YES BANK and aid the Bank’s medium to long term sustainable growth objectives. Once approved, this would be one of the largest private capital raises by an Indian Private Sector Bank.

The Bank proposes to issue ~ 370 crore equity shares on a preferential basis at a price of INR 13.78 per share and ~ 257 crore warrants convertible into equity shares at a price of INR 14.82 per warrant, adding ~ INR 8,900 crore to the equity capital base of the Bank.

Mr. Prashant Kumar, Managing Director & Chief Executive Officer, YES BANK said, “We are extremely pleased to onboard such pedigreed investors like Carlyle and Advent International as our partners, in fulfilling the long-term strategy of the Bank. This is a testimony to the inherent strength of the Bank’s franchise. We are excited about the incremental opportunities that this partnership creates for us and confident that both the investors will play a crucial role in the next growth phase of the Bank.”

Mr. Sunil Kaul, Managing Director and Financial Services sector lead for Carlyle in Asia, said, “We are confident about India’s long-term economic growth prospects and believe that YES BANK is well-placed to capture this growth, given its strong capabilities in transaction banking and digital payments. The Bank’s leadership team, led by CEO Prashant Kumar and under the direction of its Board, has done very well in steering the Bank through challenging times, and the Bank is now well-positioned for the next phase of growth. We are excited to leverage our financial services sector experience to be a value-add partner to the Bank as it continues to drive sustained growth, scale its franchise, and focus on investing in its people and leadership team.”

Ms. Shweta Jalan, Managing Partner, Advent International said, “We believe India’s banking sector is at an inflection point where tech-enabled banks like YES BANK have an advantage. This investment also demonstrates our commitment to the country’s banking and financial services industry, which is the core of India’s growth story. We think the Bank’s leadership team, led by Mr. Prashant Kumar, has done great work in reviving its performance over the last two years. We look forward to working with the Bank and to drawing on our sector expertise in supporting YES BANK in its next phase of sustained growth.”

YES BANK was advised by BofA Securities as an exclusive financial adviser and AZB & Partners as a legal advisor, while Carlyle was advised by Shardul Amarchand Mangaldas (SAM) and Advent was advised by Cyril Amarchand Mangaldas (CAM).

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