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Yes Bank has signed a deal with a France-based multilateral development finance agency, Proparco, for raising Rs.97.45 crore as subordinated debt.
"The bank intends to raise up to Rs.500 crore by way of subordinated debt forming part of upper and lower tier II capital by end of March 2010," it said in a statement. The agreement is valid for 15 years, but Yes Bank can call off the agreement after 10 years from the subscription date.
The debt qualifies for inclusion in upper tier-II for capital under Reserve Bank of India (RBI) guidelines, the bank statement said.
France-based Proparco is the investment subsidiary of Agence Franaise de Developpement.
"This capital raising has been done to further augment our tier-II capital base and our capital adequacy and enhance the long-term resources of the bank," said Yes Bank managing director and chief executive Rana Kapoor.
Added Proparco chief executive Luc Rigouzzo: "The focus areas in India for Proparco are clean energy, microfinance, health and education, and Yes Bank has a strong track record of investment and innovation in these sectors."
