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Yes Bank to raise over Rs 3,000 cr via bonds, complying with Basel-III norms

14 September, 2018 12:45 PM
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Yes Bank to raise over Rs 3,000 cr via bonds, complying with Basel-III norms

This will align the full implementation of Basel-III in India closer to the internationally agreed date of 1 January 2019

Private sector lender Yes Bank said, on Friday, 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 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, Yes Bank said in a regulatory filing.

The bonds, set to mature on 15 September, 2028, carry a coupon rate of over 9.11 percent payable annually.

The bonds have been rated AAA and AA+ with a 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.


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