YES Bank board approves buyback of overseas bonds up to $200 mn

The lender will do the repurchase at 97% of the principal amount of the notes.

YES Bank plans to buy back overseas bonds worth up to $200 million and issued under the Medium Term Note Programme. The private sector lender did not elaborate on the purpose and timing for re-purchase these bonds.

YES Bank approved and recommended to make a tender offer for re-purchase these notes at 100 per cent of the principal amount if tendered during an early tender offer period, it informed BSE. The bank’s stock closed higher by 1.06 per cent at Rs 13.38 per share.

The bank will do the repurchase at 97 per cent of the principal amount of the notes, which tendered after the end of the early tender offer period but at or before the expiry of the tender offer.

It would give updates upon completion of the repurchase of the notes, in accordance with applicable laws, it added. The board met to consider the exercise of certain rights available under the terms and conditions of the MTN programme set up for an $ one billion.

In February 2018, the bank had raised $ 600 million from international capital markets through a maiden bond issue. The Bond issuance is for a tenor of five years and was rated Baa3 by Moody’s Investors Service.

It had initially launched the deal at 150 basis points over the treasury yield but was able to achieve a final pricing of 130 basis points over equivalent five years U.S treasury yield.