YES BANK, India’s fourth largest private sector Bank, has successfully closed a competitively priced USD 400 million syndicated loan facility, borrowed out of the Bank’s IFSC Banking Unit (IBU) in Gujarat International Finance Tec City (GIFT) and will be utilized to support the IBU’s growing business.
The Bank has tied up a 3 year loan facility in a syndication 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, ensuring representation from a diverse set of countries across Europe, Middle East, Asia and Asia-Pacific.
The loan has been underwritten by a group of eight Mandated Lead Arrangers and Book-runners (MLABs) with further participation from four banks. 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.
On successful completion of the transaction, Rana Kapoor, Managing Director & CEO, YES BANK said, “The USD 400 million loan syndication reinforces the Bank’s ability to raise substantial foreign currency resources through various product instruments at a competitive price. YES BANK’s IBU has crossed USD 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.”
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 andJPY 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.
YES BANK IBU is playing a pivotal role in GIFT City’s success as a world-class IFSC. The Bank has previously successfully listed its debut USD 600 million bond issue under its maiden USD 1 billion MTN programme on Global Securities Market at India’s first International Stock Exchange sponsored by BSE at GIFT City, earlier this year. 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.