YES Bank Board Okays Fundraising; Amends AoA For Sumitomo Mitsui Rights

YES Bank Ltd.'s board has approved raising up to ₹160 billion via equity and debt instruments, the private lender said in an exchange filing late Tuesday. The bank plans to raise ₹75 billion through equity and ₹85 billion through bonds denominated in local or foreign currency.

The board also approved changes to the articles of association to grant Sumitomo Mitsui Banking Corp. a pro-rata pre-emptive right to participate in future equity issuances. The Japanese bank will also be entitled to nominate two non-executive, non-independent directors to YES Bank’s board.

Sumitomo Mitsui is set to acquire a 20% stake in the bank by buying 13.19% from State Bank of India and 6.81% from other banks, as disclosed in May. SBI will continue to have the right to nominate one non-executive, non-independent director to the board.

Separately, CA Basque Investments on Tuesday sold 410 million shares of YES Bank on the NSE at ₹21.68 per share, totalling ₹8.86 billion. The same number of shares were sold on the BSE at ₹21.61 per share.