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. 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 lender has also said it'll 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 said its management was extensively working with its investment bankers, legal and accounting advisers on the funding issue. The private lender added it would delay the October-December quarter financial results in wake of the ongoing capital raising process.
"Given that the current capital raising process has the Bank's fullest attention; it would like to inform the exchanges that it will publish its unaudited financial results for the quarter and nine month period ending December 31, 2019, on or before March 14, 2020."
This would, however, exceed the 45-day period from the end of the relevant quarter as stipulated under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 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 Wednesday downgraded YES Bank's long-term issuer rating to 'IND A-' from 'IND A', while maintaining on 'Rating Watch Negative' (RWN). The rating downgrade was attributed to continued delay and inconclusive quantum of the anticipated equity infusion in YES Bank.
The bank continues to remain in discussions with various potential investors, but has failed to reach 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.
Last month, YES Bank rejected $1.2 billion investment offer made by Canadian industrialist Erwin Singh Braich/SPGP Holdings.
Edited by Manoj Sharma