YES BANK, India’s new age private sector Bank, today announced that its Capital Raising Committee of the Board of Directors approved the decision to issue 14.7 million equity shares, on a preferential basis, to Orient Global Tamarind Fund Pte Ltd (Orient Global Tamarind). Orient Global Tamarind is part of the Orient Global group, a Singapore-based private investment company founded by Mr Richard Chandler.
This preferential issue of Tier I equity capital, constituting 4.99% of the expanded share capital of the Bank, is subject to necessary regulatory and YES BANK shareholder approvals. The shares have a lock-in period of one year from the date of issue.
The resulting investment of INR 3.31 billion (approximately USD 84 million) will enable YES BANK to further accelerate its growth initiatives and build on the significant momentum it has generated across its various businesses since it commenced commercial operations in August 2004. In July 2005, the Bank successfully concluded an Initial Public Offering of INR 3.15 billion (approximately USD 70 million). Subsequently, in December 2006 the Bank raised a further INR 1.2 billion (approximately USD 26.5 million) through a preferential placement of 10 million equity shares at INR 120 per share to Swiss Reinsurance Company, Zurich, Switzerland.
On the occasion of this announcement, the Managing Director & CEO of YES BANK, Mr. Rana Kapoor, said: “This partnership with a highly principled and reputable investor like Orient Global, validates our business and financial model in the competitive banking sector and underlines the confidence of long-term value investors in YES BANK”.
“This investment will further complement our expertise in providing knowledge based products and services to our customers in our ongoing quest to build one of the world’s best quality bank in India”, concluded Mr. Kapoor.
Commenting on the investment, Mr. Pekka Johnson, Head of Capital Markets at Orient Global said: “Orient Global is delighted to invest in YES BANK through the proposed preferential allotment. This investment represents an excellent opportunity to build a long-term partnership with a world class management team operating a successful business model within the rapidly developing Indian banking sector. Orient Global’s investment in YES BANK supports the development of the financial services sector in one of the fastest growing economies in the world.”
Source: Money Control