Yes Bank issues debut international bond to raise US$ 600 million

Banking major Yes Bank rolled out the largest debut international bond issuance by an Indian bank on Wednesday to raise funds worth US$ 600 million under its US$ 1 billion MTN program.

To be listed on 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 bond issuance is for a tenor of 5 years and is rated Baa3 by Moody’s Investors Service.

The bond issuance’s final order book was oversubscribed by 1.8 times, from 90 accounts at a spread of 130 basis points. The bond received strong response from international investors including a 46 per cent participation from the asset managers, 38 per cent from banks, 11 per cent from insurance and 5 per cent from private banks.

The bond has seven joint book running lead managers including CLSA, HSBC, JP Morgan Securities, Merrill Lynch International, Nomura, Standard Chartered and Yes Bank (IFSC). It has the lowest spread over treasury for a debut fixed rate international bond issuance by an Indian bank with a minimum issue size of US$ 500 million.

In the equity markets, Yes Bank hit an intraday high of Rs. 346 per share and an intraday low of Rs. 334.40 per share on Wednesday. At 12:00 hours IST, the stock was trading at Rs. 335.15, down by one per cent on BSE on Wednesday.