Yes Bank to close $1 billion fundraise from Carlyle and Advent International
This comes after a long delay due to an ongoing deal to lay off large amounts of bad loans via Asset Reconstruction Company (ARC)
Carlyle, a private equity firm based in Washington, is interested in acquiring 10% of Yes Bank via convertible debt.
The board meeting to discuss the fundraising will be held during mid-July
Reports from last year said Carlyle was considering an investment of up to $600 million (Rs 3,750-4,500 crore) in Yes Bank.
As per a recently released report, Carlyle will sell its entire stake in SBI Cards & Payments Services for as much as Rs 2,558 crore.
Yes Bank will offload 49,000 crore rupee in bad loans by its partner JC Flowers ARC as it works to clean up the books and raise capital for credit growth.
The bad loan book of Rs 49,000 crore includes technical write-offs of Rs 17,000 crore and soured investments.
After 2 years, the Reserve Bank of India and the government adopted a plan to save Yes Bank from bankruptcy via a loan restructuring. The bank announced on 8 June that it had begun to exit the reconstruction plan.
The board of directors appointed under the scheme recommended that a new board be created and it would seek shareholders' approval.