Yes Bank completes $600-million maiden dollar bonds issue

Yes Bank has completed issuance of its maiden USD 600-million bond issue in the international debt markets, a press release from the bank stated.

The bond issuance is for a tenor of 5 years and is rated Baa3 by Moody’s Investors Service.

This bond will be listed on the London Stock Exchange International Securities Market (LSE ISM), the Singapore Exchange Securities Trading (SGX), and the India International Exchange IFSC at GIFT City, Gandhinagar.

The bank had initially launched the deal at 150 basis points over the treasury yield, which helped the bank to achieve a final pricing of 130 basis points over equivalent 5-year US treasury yield.

This was the lowest spread over Treasury for a debut fixed rate International bond issuance by an Indian bank with a minimum issue size of USD 500 million, a release stated.

CLSA, HSBC, JP Morgan Securities, Merrill Lynch International, Nomura, Standard Chartered and YES BANK (IFSC) were joint book running lead managers for the offering.

The bonds received strong response from international investors and saw a final order book, at a spread of 130 basis points, being oversubscribed by more than 1.83 times from over 90 accounts.

In terms of investor type, the split was 46 percent to asset managers, 38 percent to banks, 11 percent to insurance companies and 5 percent to private banks.

In terms of geographic distribution, Asian accounts received 58 percent of the allocation, EMEA received 41 percent and offshore US accounts received 1 percent .

The proceeds will be used to fund the bank’s IFSC Banking Unit (IBU) in Gift City and expand IBU’s rapidly growing business opportunities. The bond issuance is aligned to the Government of India’s commitment to building a high-tech financial hub in the country.

Rana Kapoor, Managing Director and Chief Executive Officer, YES BANK, said, “This landmark issue is the first foreign currency bond offering by YES BANK under our newly established MTN (Medium Term Note) program, and the significant over-subscription as well as high quality investor base is testament to the commitment reposed by global investors in the Bank.”

“I am sure this will further strengthen India’s position as the preferred investment destination for global investors. As the 1st Bank to have begun operations at GIFT, we remain committed to expanding our operations at the IBU (IFSC Business Unit), Gandhinagar,” Kapoor added.moneycontrol