Yes Bank raises another $400 mln via syndicated loan for GIFT ops

YES BANK, India’s fourth largest private sector Bank, said it has taken a syndicated loan of $400 million loan facility from a syndicate led by Bayerische Landesbank, Commerzbank, CTBC Bank, First Abu Dhabi Bank PJSC, Korea Development Bank, State Bank of India, United Overseas Bank Limited and Westpac Banking Corporation.

The money was borrowed out of the Bank’s IFSC Banking Unit in Gujarat International Finance Tec City (GIFT) and will be utilized to support the unit’s growing business.

Landesbank Baden-Wurttemberg acted as Mandated Lead Arranger (MLAs) to the facility whereas First Commercial Bank, Export – Import Bank of the Republic of China and Sunny Bank Limited acted as Arrangers.

The Bank had also recently raised USD 400 million through two Syndicated loan transactions in Taiwan and Japan, comprising of USD 250 million from Taiwanese banks and JPY 16.5 billion (~USD 150 million) from Japan in November, 2017 followed by a USD 300 million syndicated loan transaction completed in July 2018 which saw subscription from eight banks.

Indian companies have been increasingly raising loans from overseas entities, partly owing to the tight credit conditions in the domestic market and partly to take advantage of much lower interest rates outside.

However, the Indian rupee has depreciated by about 13% against the US dollar so far this year, which has made many dollar-denominated loans more expensive.

Rana Kapoor, Managing Director & CEO of the bank said the IFSC Banking Unit has crossed $3 billion balance sheet within three years of starting operations at GIFT City.

“As the 1st Bank to have begun operations at GIFT City, we remain committed to expanding our international operations, as well as deepening our offerings at the YES BANK IBU at GIFT City.”

YES BANK had earlier this year listed its debut USD 600 million bond issue at India’s first International Stock Exchange sponsored by BSE at GIFT City.

“The IBU thereby has emerged as a significant strategic addition to the Bank’s business model and is helping in further diversification and expansion of cross border asset products as well as widening the scope and depth of the liabilities base,” it said.