Yes Bank announces Preferential Placement of equity to fund the Bank's Expansion Strategy

Yes Bank Ltd on October 18, 2006 has 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 the Company’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 the 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, of the 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.

Source : Equity Bulls

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