YES BANK announces Preferential Placement of Equity

47234 Investors following Yes Bank. Share this News with them.

0

Like this story, share it with millions of investors on M3

YES BANK announces Preferential Placement of Equity

YES BANK announces Preferential Placement of Equity to fund the bank’s expansion strategy

Post your opinion here

 

0

Tweet

Share on Tumblr

RELATED NEWS Yes Bank to make private placement to Swiss Re-insurance Yes Bank charts aggressive plans for retail banking Yes Bank launches easy online bill payment service ALSO READ See latest News about Yes Bank See previous management interviews See what other Experts & Brokerages are saying about Yes Bank YES BANK BSE | NSE 25/05/12 Are Mutual Funds betting on YES BANK?

YES BANK, India's new age private sector Bank, today announced that its Board Committee of Directors approved the decision to issue 10 million equity shares on a preferential basis to Swiss Reinsurance Company, Zurich, Switzerland (Swiss Re), one of the world's leading and most diversified re-insurers, subject to necessary approvals, including from YES BANK's shareholders.  The Tier I issuance constitutes 3.57% of the expanded share capital of the Bank.

The resulting investment of INR 1.20 billion (approximately USD 26.5 million), which has a lock-in period of one year, will enable YES BANK to further accelerate its growth initiatives and build on the significant momentum it has generated across its various businesses since the Bank commenced its commercial operations in August 2004. The Bank had earlier, in July 2005, successfully concluded an Initial Public Offering of Rs. 3.15 billion (approximately USD 70 million) that was oversubscribed 30 times.

On the occasion of this announcement, Rana Kapoor, Managing Director & CEO, YES BANK said, "This partnership with a finest pedigree, marquee investor like Swiss Re, validates our business and financial model in the competitive banking sector and underlines the confidence of long-term value investors in YES BANK". "This investment will complement our expertise in providing knowledge based products and services to our customers in our unstinted quest to build one of the world's best quality bank in India", concluded Mr. Kapoor.

Commenting on the development, Peter Gujer, Executive Team Member of Swiss Re Asset Management, said that "Swiss Re is very pleased to become a shareholder in YES BANK through the proposed preferential allotment. This investment represents an excellent opportunity to build a long-term partnership with a world class management team and a rapidly developing banking platform in India." Peter Gujer added that "The Indian macro economy in general and the banking sector in particular have significant growth potential and we believe that YES BANK, based on its operating principles and a strong execution culture, is particularly well positioned to establish a successful business model within the sector."

Sourced From: Adfactors Public Relations Pvt Ltd