London: Yes Bank today listed its first dollar-denominated bond on the London Stock Exchange, raising 600 millionï dollars.
The five-year dated bond listed on the exchanges International Securities Market (ISM) received strong international investor interest,�with 58 per cent allocated in Asia, 41 per cent in Europe, Middle East and Africa (EMEA) and 1 per cent in offshore US.�
“The final order book was more than 1.8 times oversubscribed, from 90 accounts pricing at a spread of 130 basis points over 5-year US Treasury yield,” the exchange said.
The investor base for the bond consisted of 46 per cent asset managers, 38 per cent banks, 11 per cent insurance companies and 5 per cent private banks.
Yes Bank said the bond demonstrates Prime Minister Narendra Modis commitment to building a high-tech financial hub in India, with proceeds aimed at funding the banks IFSC Banking Unit (IBU) at Gujarat International Finance Tec-City (GIFT) and expanding IBUs growing business.
“This landmark issue is the first foreign currency bond offering by Yes Bank under our newly-established MTN (Medium Term Note) programme, and its significant over-subscription as well as high quality investor base is testament to the commitment of global investors in the bank,” said Rana Kapoor, MD & CEO and Chairman, YES Global Institute, Yes Bank.
“I am sure this will further strengthen Indias position as the preferred investment destination for global investors. As the first Bank to have begun operations at GIFT, we remain committed to expanding our operations at the IBU, Gandhinagar,” he said.
The listing on London Stock Exchange would provide global investors an opportunity to invest in Indias banking sector as well as participate in the country?s growth story, Kapoor said.
Yes Banks bond issuance comes shortly after Export- Import (EXIM) Bank of Indias 1-billion-dollar bond on London Stock Exchange?s ISM.
“Through our International Securities Market, Yes Bank is accessing a new international channel of finance and supporting the creation of a dynamic financial services hub in India,” said Darko Hajdukovic, Head of Analytics, Fixed Income and Funds, Primary Markets, London Stock Exchange Group.
Hajdukovic described the latest listing as a reinforcement of Londons position as a “valued funding partner” to India.
Back in August 2016, Yes Bank had issued a green bond, raising Rs 3.15 billion through a back-to-back transaction with International Finance Corporation (IFC).
London Stock Exchange said its ISM has been designed to meet the demands of issuers and investors to improve the effectiveness and competitiveness of the UK primary debt markets providing greater choice for a variety of fixed income issuers.
Source: PTI
