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Yes Bank raises Rs 3,000 crore from bonds

Private sector Yes Bank on Saturday said it has raised Rs 3,000 crore from bonds to fund business expansion.


Yes Bank raises Rs 3,000 crore from bonds

New Delhi: Private sector Yes Bank on Saturday said it has raised Rs 3,000 crore from bonds to fund business expansion.

With this capital raising, the bank's Tier-I Capital Ratio will be at 12 per cent including profits and adjusted for pro-rata dividends, Yes Bank said in a statement.

The Basel-III compliant additional Tier-1 (AT1) Bonds will be listed on the BSE and its proceeds will qualify for Basel III Tier-I Capital.

The bonds, carrying a coupon rate of 9.50 per cent, witnessed participation from insurance companies, mutual funds, pension funds, provident funds, banks amongst others.

Under the Basel-III norms, AT-1 bonds come with loss absorbency features, meaning that in case of stress, banks can write off such investments or convert them into common equity if approved by the RBI.

From Zee News

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