Yes Bank completes Swiss Re Equity Transaction

Yes Bank Ltd on December 22, 2006 has announced that it has completed the infusion of equity capital of INR 120 crores (USD 26.5 million) comprising of private placement of 10 million equity shares to Swiss Reinsurance Company, Zurich, Switzerland (Swiss Re), following necessary approvals from the Reserve Bank of India and the Bank’s shareholders. The Tier I placement of equity shares of face value of INR 10 each at a premium of INR 110 per share constitutes 3.57% of the expanded share capital of the Bank.

Post this transaction, the paid-up share capital of the Bank has increased to INR 2.8 billion. The total capital base, including Tier I & Tier II of the Bank has now surpassed the INR 1000 crore mark.

On this occasion, Mr Rana Kapoor, Founder / Managing Director & CEO, of the Bank said, "We are extremely pleased with this landmark transaction with a marquee investor of Swiss Re’s pedigree, which is consistent across our overall high quality YES BANK investor base." "We continue to strengthen our capital base to scale our execution capabilities in our quest to become the World’s Best Quality Bank in India," added Mr Kapoor.

In July 2005, the Bank successfully concluded an Initial Public Offering of INR 315 crores (approximately USD 70 million) that was oversubscribed 30 times. Subsequently, in November 2006, the Bank successfully raised INR 180 crores (USD 40 million) of subordinated Tier II debt through private placement issue of unsecured, redeemable, non-convertible, subordinated bonds.

Source : Equity Bulls

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