The Board of Directors of YES BANK in its meeting approved the allotment of equity shares and equity share warrants aggregating to a total consideration of ~ INR 8,887 crore (~US$1.1bn) through a preferential issue to the funds affiliated with two global marquee private equity investors – Carlyle and Advent International. Subsequent to the issuance (post conversion of the equity share warrants), both investors will own 9.99% each of the post-issue paid up share capital of the Bank.
This marks the completion of the Bank’s capital raise which was approved by the Board of Directors on July 29, 2022 and subsequently by the shareholders of the Bank on August 24, 2022 followed by receipt of requisite regulatory approvals. Sunil Kaul, Managing Director and Financial Services Sector Lead for Carlyle in Asia and Shweta Jalan, Managing Partner, Advent International, have been appointed as Additional directors to YES BANK’s Board.
This is the second largest private capital raise transaction to take place in the Indian Banking Sector over the last two decades. The capital raise will further bolster the CET1 ratio of YES BANK to increase by nearly 400 bps (post conversion of the equity share warrants) and aid the Bank’s medium to long term sustainable growth objectives.
Prashant Kumar, Managing Director & Chief Executive Officer, YES BANK, said “We are extremely pleased to have two marquee global private equity investors – Carlyle and Advent International – as our partners to help fulfill the long-term strategy of the Bank. The completion of the fund raise strengthens the Bank’s balance sheet and at the same time, allows us to further accelerate our investments in enhancing our capabilities and delivery platforms, both in digital and physical infrastructure. We are excited about the incremental opportunities that this partnership creates for us and are confident that both the investors will play a crucial role in the next growth phase of the Bank.”