Private lender Yes Bank will borrow $50 million (about Rs 330 crore) from International Finance Corporation (IFC) through long-term bonds for ‘gender financing’ that will support women borrowers.
IFC, a World Bank subsidiary, will invest the proceeds of the bonds to lend to women borrowers and will get financing from the CSR (corporate social responsibility) arm of Goldman Sachs, an official aware of the development told HT.
“This will address the financing needs of women entrepreneurs and other women borrowers who face difficulty in raising money. It has been supported by Goldman Sachs. It will be raised at a rate of Libor (London Interbank Offered Rate) plus about 1.50 percentage points,” the official added.
Last year, IFC had raised Rs 315 crore (about $49.2 million) to invest in green bonds issued by Yes Bank.
On Monday, Yes Bank also raised Rs 545 crore through 10-year bonds on a private placement basis to meet its Basel III capital requirements.
Informing the stock exchanges, Yes Bank said it “has successfully raised Rs 545 crore of Basel III compliant Tier II bonds on private placement basis. The issue was closed on March 31, 2016.”
The bonds were raised at about 9%, about 0.30 - 0.40 percentage points higher than some public sector banks.
The issue was rated “ICRA AA+ hyb” by ICRA and “CARE AA+” by CARE and the Bonds will be listed on the BSE Limited, Yes Bank said.
Basel III is a global regulatory framework that underlines minimum capital requirement by banks by March 2018 intended to strengthen bank capital requirements and stress tests by increasing bank liquidity and decreasing bank leverage. It is much more stringent than existing liquidity requirements.
On Monday, shares of Yes Bank ended 1.4% higher at Rs 867.85 per share on the Bombay Stock Exchange.