Yes Bank seeks shareholder nod to raise up to ₹10,000 cr via debt instruments
PremiumThe bank further said that it may raise funds in one or more tranches in domestic and/or overseas market from eligible investors on private placement basis.
Private sector lender Yes Bank on Tuesday said it will seek shareholders’ nod to raise 10,000 crore through an issuance of debt instruments at the 18th Annual General Meeting (AGM) on Friday, 15 July 2022.
The bank further said that it may raise funds in one or more tranches in domestic and/or overseas market from eligible investors on private placement basis.
The 18th Annual General Meeting will be held at 10:30 am through video-conferencing (VC) / other audiovisual means (OVAM).
For enabling the Bank to evaluate a potential fund raising at an appropriate time, the Board of Directors seek approval from Members of the Bank for borrowing/ raising funds in Indian/ foreign currency by issue of debt securities up to `10,000 Crore (Rupees Ten Thousand Crore Only). It may include (but not limited to) nonconvertible debentures, bonds, MTN (Medium-Term Notes), Basel III compliant bonds, etc. pursuant to the relevant provisions of the applicable circulars or guidelines issued by Reserve Bank of India, the company said in a BSE filing.
It further said that the bank may raise funds in one or more tranches in domestic and/or overseas market from eligible investors on private placement basis, as per the structure and limits permitted by Reserve Bank of India and other regulatory authorities on such terms and conditions determine/considered appropriate by the Board of Directors or any Committee(s) thereof or such other persons as may be authorised by the Board, from time to time.
This would form part of the overall borrowing limits under Section 180(1)(c) of the Act. This resolution under Section 42 of Act shall be valid for a period of one (1) year from the date of passing of this resolution, it said.
Earlier on June 8, the bank said that it has kicked off the process of forming an alternate board as it has come out of the reconstruction scheme.
“The alternate board is being constituted and will operate under the applicable laws and regulations as against the current board which was constituted and is functioning under the ambit of the Reconstruction Scheme," said the private lender in a statement.
The government had notified the Yes Bank Reconstruction Scheme on March 13, 2020 after the lender faced governance crisis triggered by mismanagement at top level.