JC Flowers and Co, a US-based private equity fund, is leading a consortium of about half a dozen investors that may pump in $2 billion in cash-strapped YES Bank, Business Today reported.
The financial firms who have submitted ‘non-binding’ expressions of interest are JC Flowers & Co, Tilden Park Capital Management, OHA (UK) (part of Oak Hill Advisors) and Silver Point Capital. The private bank has additionally said it will release the December quarter financial results by March 14.
In a late-night filing on Wednesday, YES Bank said its financial advisers were in discussions with these investors on the commercial terms, including pricing of their investments. YES Bank management was extensively operating with investment bankers, legal and accounting advisers on the funding issue. The private bank added it would delay the October-December quarter financial results in the wake of the ongoing capital raising process.
“Given that the present capital raising method has the Bank’s fullest attention; it might prefer to inform the exchanges that it’ll publish its unaudited financial results for the quarter and nine-month phase ending December 31, 2019, on or before March 14, 2020.”
This would, however, exceed the 45-day duration from the tip of the relevant quarter as stipulated below Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) rules, 2015.
New York-based JC Flowers & Co is a private investment firm that invests in the financial services industry globally.
India Ratings and Research (Ind-Ra) on February 12, downgraded YES Bank’s long establishment rating to ‘IND A-‘ from ‘IND A’ whereas maintaining it on ‘Rating Watch Negative’ (RWN). The rating decline was connedcted to continued delay and inconclusive quantum of the expected equity infuse in YES Bank.
The bank continues to stay in discussions with various potential investors however has not reached a conclusive outcome. In December, YES Bank said its board was willing to favourably consider London-based Citax Holdings’ $500 million offer, adding that it would continue to evaluate other potential investors to raise capital up to $2 billion.
