Global PE investors Carlyle, Advent to pick up 10% stake each in YES Bank

Private lender YES Bank on Friday announced raising equity capital worth $1.1 billion through funds affiliated with global private equity investors Carlyle and Advent International. Each investor will potentially acquire up to 10 per cent stake in YES Bank, the lender said in an exchange filing.

“This will be raised through a combination of $640 million (Rs 5,100 crore) in equity shares and $475 million (Rs 3,800 crore) through equity share warrants,” YES Bank said.

The fund-raising plan is subject to shareholders approval at the Extraordinary General Meeting of YES Bank, to be held on August 24.

“The capital raise will further bolster the capital adequacy of YES BANK and aid the Bank’s medium to long term sustainable growth objectives. Once approved, this would be one of the largest private capital raises by an Indian Private Sector Bank,” the lender said.

YES Bank has proposed to issue 3.7 billion equity shares on a preferential basis at a price of Rs 13.78 per share and 2.57 billion warrants convertible into equity shares at a price of Rs 14.82 per warrant. This will add Rs 8,900 crore to the equity capital base, YES Bank said.

“We are extremely pleased to on-board such pedigreed investors like Carlyle and Advent International as our partners, in fulfilling the long-term strategy of the Bank. This is a testimony to the inherent strength of the Bank’s franchise,” Prashant Kumar, Managing Director & Chief Executive Officer, YES BANK said.

“We are excited about the incremental opportunities that this partnership creates for us and confident that both the investors will play a crucial role in the next growth phase of the Bank,” Kumar said.

YES BANK was advised by BofA Securities as an exclusive financial adviser and AZB & Partners as a legal advisor, the lender said.

Carlyle was advised by Shardul Amarchand Mangaldas and Advent was advised by Cyril Amarchand Mangaldas for the deal.