Yes Bank, India’s fourth largest private sector Bank, has recently raised additional $34 million from DEG, through a long term senior loan agreement for a tenor of 6 years. This loan arrangement follows Yes Bank raising dual tranche $150 million from IFC, Washington, a member of the World Bank Group, for tenor of 2 and 7 years, in December 2013. The bank was the first institution globally to receive funding through IFC's Managed Co- Lending Portfolio Program and the first Indian bank to raise loan under IFC’s A/B loan facility.
By utilizing the liberalized regulations of the RBI in raising the FCY borrowings limit from 50% to 100% of Tier I capital and the concessional FCNR (B) deposit swap window, Yes Bank has closed the financial year 2013-14 with $500 million raised in longer term FCY loan and FCNR funds. The loan facilities are being used by the bank to scale up its general corporate lending and small and medium enterprise loan portfolios.
The Multi-currency dual tenor tranche FCY syndicated loan of $180 million/EUR 58 million raised by the bank, during the FY 2013-2014, was also recognized as the ‘Financial Institutions Syndicated Deal of the Year 2013’ by the Asia Pacific Loan Market Association (APLMA) for the second consecutive year.
