YES Bank plans will consider raising equity capital of about $400 million through issue of global depository receipts and qualified institutional placement.
The bank plans to take up the matter for discussion in its next board meeting scheduled in April. Recently, it raised Rs 380 crore in debt from International Finance Corp (IFC).The 15-year issue was raised at a coupon of 482 basis point over Libor. A basis point is 0.01 percentage.
The bank plans to raise funds from European markets as investors' risk appetite returns after the European crisis appears to have eased. In the last quarter, the bank raised Rs 830 crore through debt issuances. The bank's capital adequacy will be over 16 percent following this issue, said Rana Kapoor, managing director and chief executive officer, Yes Bank.
Volatile global and domestic markets had affected capital raising plans of many financial institutions in 2011. Stock markets have lost more than a tenth of their value in the financial year ended March 2012. The Bombay Stock Exchange's Sensex declined around 11 percent, in contrast to a gain of 10.9 percent in the previous year. The Nifty lost 9.23 percent, against a rise of 11.14 percent a year earlier.