Fundraising fillip: Yes Bank surges 8% as the firm sees investor interest


After suffering losses for three consecutive sessions, shares of Yes Bank surged 8 percent intraday on BSE on February 13, a day after the company said it had received non-binding expressions of interest (“EOIs”) from several prominent investors.

In a BSE filing on February 12, the bank said J.C. Flowers & Co. LLC, Tilden Park Capital Management LP, OHA (UK) LLP (part of Oak Hill Advisors), Silver Point Capital are among the firms that have shown interest in the lender.

Further, Yes Bank said the company and its financial advisors are currently in discussions with these investors on the commercial terms, including pricing of their investments which will be subject to certain conditions and receipt of requisite approvals, including regulatory approvals with respect to the size of the stake to be acquired, as well as necessary dispensations with regard to applicable pricing guidelines.

The bank also said that it will release its December quarter earnings on or before March 14.

“We shall keep the Exchanges apprised of progress with respect to capital raising, in the meantime, we request you to kindly take note of our decision to announce our quarterly financial results for Q3FY20 on or before March 14, 2020,” Yes Bank said.

Meanwhile, for the second time in two months, India Ratings (Ind-Ra) on February 12 downgraded long-term issuer rating on certain debt instruments of Yes Bank to ‘A-‘ from ‘A’ and also maintained it on the rating watch ‘negative’.

The rating agency also said it reflects the continued delay and inconclusive quantum of the anticipated equity infusion in the beleaguered bank.

The downgrades are on three bonds worth Rs 25,680 crore, the agency said and said if the bank finalised the publicly announced fundraising plan by the end of the month, it could the same could be reviewed.

The domestic agency had downgraded the struggling lender on December 19, 2019, while international agencies have been doing so since last May.
In the latest round of rating actions, the domestic rater has downgrades three debt instruments of the mid-sized lender that has been struggling to raise core capital for months now–the Rs 11,000-crore Basel III tier 2 bonds, the Rs 11,100-crore additional Basel III tier 1 bonds and the Rs 3,580-crore of infrastructure bonds.

News Source:- Moneycontrol

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