New Delhi: Yes Bank on Monday said it would raise $250 million in the current fiscal by private placement of shares and through bonds issue. As part of its fund raising plans, French financial institution Proparco will invest $20 million in the bonds of Yes Bank.

This is for the first time that the French Government sponsored multilateral agency would invest in an Indian bank. The capital raising would be done “to further augment our Tier II capital base and our capital adequacy and enhance the long-term resource s of the bank,” Yes Bank Founder and Managing Director, Rana Kapoor told reporters here.

Of the total amount, Yes Bank plans to raise $ 150 million through private placement of shares and the rest through bonds issue. “$150 million would be raised through private placement of shares with potential buyers and $ 100 million through upper and lower tier II capital by the end of March 2010…$ 250 million in totality,” Kapoor said.

Meanwhile, the public sector lender today entered into an agreement with Proparco to raise $ 20 million (Rs 95 crore) through subordinated bonds. Proparco is a private sector investment arm of Agence Francaise de Developpement (AFD), the leading French multilateral development finance agency which works on behalf of the French government.

source: Sify Finance

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