Finance

YES Bank board to meet on November 29 to discuss fund raising

Updated : November 27, 2019 06:46 AM IST

A meeting of the board of directors of YES Bank will be held on November 29, 2019, to discuss and consider raising of funds by issue of equity/equity-linked securities.

"Notice is hereby given that a meeting of the Board of Directors of YES Bank Limited ('the Bank') will be held on Friday, November 29, 2019 at Mumbai, inter alia, to discuss and consider raising of funds by issue of equity/ equity-linked securities through permissible modes, subject to necessary shareholders/ regulatory approvals, as applicable," the bank said in a regulatory filing.

Also read: Yes Bank gets binding offer of $1.2 billion from Hong Kong's SPGP Holdings, sources say

The bank, however, did not elaborate on the quantum of funds it plans to raise.

Earlier, the bank, which has claimed that it is in discussions with potential suitors who are willing to pump in up to $3 billion (around Rs 21,156 crore) collectively, said it may raise the money either through the North American family office, which has made a binding offer to pump $1.2 billion, or through a combination of investors.

Also read: Yes Bank posts Rs 600.1 crore net loss in September quarter

The other investors include private equity funds, domestic mutual funds, domestic financial investors and also domestic family offices.

"We have to inform the North American family office by the end of November. We will raise $1.2 billion by end of December and it may be either from them or a combination of investors," its chief executive Ravneet Gill told a select group of reporters.

He said the money raised will suffice the bank for two years, after considering its aim to expand the loan book to "high-teen" levels, Gill said, asserting that the asset quality issues are under check now.

As part of the offer, the family office has also attached a letter from a major US bank with which it has a long relationship, affirming the former's ability to pay the promised sum, Gill said, adding that the family office has a “multi-billion” net worth.

Shares of YES Bank ended at Rs 64.20, up by Rs 0.45, or 0.71 percent on the BSE.

YES Bank board to meet on November 29 to discuss fund raising

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