Yes Bank is in advanced stages of negotiations to close a $1bn equity fundraise from private equity firms Carlyle and Advent International, two people aware of the development said.
The fundraising talks had been progressing slowly because of the asset reconstruction company (ARC) deal that Yes Bank was running to offload a large chunk of the bad loans on its books, the people cited above said. The fundraise talks with Carlyle and Advent picked up pace with the bank deciding to partner with JC Flowers for the ARC and the discussions are likely to be concluded soon. However, this may take some more time as the bank is seeking shareholder approval for a new board of directors.
Mint reported on 2 June that Yes Bank has chosen JC Flowers Asset Reconstruction Co as its partner to offload bad loans of ₹49,000 crore as the lender seeks to clean up its books and raise capital to fund credit growth. JC Flowers offered ₹12,107 crore against the bad loan book, ensuring a 25% recovery. Yes Bank will need to invest ₹400 crore in the JC Flowers ARC to pick up a 20% stake in the company.
Read more: Mint
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