Today, YES Bank Announced to Raise Rs 3,042 Crore Via Bonds
On Friday, it was announced by the Yes Bank that 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.
Important date of the issue opening and closing is September 14, 2018.
It was observed that 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.