February 07, 2018

India’s YES BANK chooses London for first ever USD bond

  • India’s YES BANK completes issuance of 5 year dated USD 600 million bond on London Stock Exchange’s International Securities Market
  • Largest debut international bond issuance by an Indian bank
  • First lender from Gujarat International Finance Tec-City (GIFT City) to access the international capital markets
  • Comes shortly after Export-Import Bank of India’s USD 1 billion bond in London
  • Reinforces London’s status as India’s funding partner of choice

London Stock Exchange Group today welcomes YES BANK of India’s first US dollar denominated bond. The five year dated bond raised USD 600 million and listed on London Stock Exchange’s International Securities Market (ISM).

The bond received strong international investor interest, with 58 per cent allocated in Asia, 41 per cent in EMEA and one per cent in offshore US. The investor base consisted of 46 per cent asset managers, 38 per cent banks, 11 per cent insurance companies and five per cent private banks. The final order book was more than 1.8 times oversubscribed, from 90 accounts pricing at a spread of 130 basis points over 5-year US Treasury yield.

YES BANK is the first lender based out of GIFT City to launch a Medium Term Note (MTN) programme. It will use the proceeds to fund the bank’s IFSC Banking Unit (IBU) in GIFT City and expand IBU’s growing business opportunities. The bond demonstrates Indian Prime Minister, Narendra Modi’s commitment to building a high-tech financial hub in India.

YES BANK’s bond issuance comes shortly after Export-Import Bank of India’s USD 1 billion bond on London Stock Exchange’s ISM.

Darko Hajdukovic, Head of Analytics, Fixed Income and Funds, Primary Markets, London Stock Exchange Group:
“We congratulate YES BANK on its successful USD 600 million bond issuance today – a first for YES BANK and a first for GIFT City. Through our International Securities Market, YES BANK is accessing a new international channel of finance and supporting the creation of a dynamic financial services hub in India.

“Today also underlines the strength of the economic and financial partnership between the UK and India, reinforcing London’s position as a complimentary and valued funding partner to India.”

Rana Kapoor, MD & CEO and Chairman, YES Global Institute, YES BANK:
“This landmark issue is the first foreign currency bond offering by YES BANK under our newly established MTN programme, and its significant over-subscription as well as high quality investor base is testament to the commitment of global investors in the Bank. I am sure this will further strengthen India’s position as the preferred investment destination for global investors. As the first Bank to have begun operations at GIFT, we remain committed to expanding our operations at the IBU, Gandhinagar. Listing on London Stock Exchange provides global investors an opportunity to invest in India's banking sector and thus participate in the country’s promising growth story.”

Amit Singh, Partner, Allen & Overy:
"We were delighted to assist YES BANK in establishing their MTN programme and issuing ISM listed notes under it. We have acted on a number of capital markets offerings (both debt and equity) for YES BANK over the years. We continue to advise on the majority of bond offerings from India and a significant number of them are ISM listed."

YES BANK’s bond is the latest in a long line of global firsts for London Stock Exchange Group, including numerous high profile Indian issuances on London Stock Exchange:

  • In January 2018 – Export-Import Bank of India issued USD 1 billion bond on London’s International Securities Market. It was 2018’s largest quasi-sovereign issuance from Asia in the international debt capital markets.
  • In December 2017 – London Stock Exchange welcomed Indian Railway Finance Corporation’s first green bond. The ten year dated green bond raised USD 500 million.
  • In November 2017 - Indian Power Finance Corporation listed its first international bond in almost two decades in London, raising USD 400 million.
  • In August 2016 – YES BANK issued a green bond, raising INR3.15 billion through a back-to-back transaction with International Finance Corporation
  • London Stock Exchange has welcomed 44 Masala bonds and helped supranational and Indian corporates raise over USD 6.5bn equivalent.

ISM has been designed to meet the demands of issuers and investors to improve the effectiveness and competitiveness of the UK primary debt markets providing greater choice for a variety of fixed income issuers. To find out more about ISM, visit: www.lseg.com/ism

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