YES Bank has raised Rs. 3,000 crore from bonds to fund business expansion.
With this capital raising, the bank’s Tier-I Capital Ratio will be at 12 per cent including profits and adjusted for pro-rata dividends.
The Basel-III compliant additional Tier-1 (AT1) Bonds will be listed on the BSE and its proceeds will qualify for Basel III Tier-I Capital.
Under the Basel-III norms, AT-1 bonds come with loss absorbency features, meaning that in case of stress, banks can write off such investments or convert them into common equity if approved by the RBI.