YES Bank ties up $255 mn foreign currency loan

Private sector lender YES Bank has tied up a loan facility equivalent to $255 million in dual currency from international lenders.

The syndicated loan facility comprises $180 million and Euro 58 million, the bank said in a statement. The loans will be utilised for corporate purposes and for trade finance, it said.

The commitments, which have a maturity of 1 and 2 years, have come from 11 banks in eight countries across US, Europe, Middle East and Australia, it said.

YES Bank's statement said the recent move by the Reserve Bank of India (RBI) on offering a swap facility to banks for their foreign borrowings at 1 percentage point below the market rate will reduce the landed rupee cost of the loan and make it competitive as against rupee borrowings of the same maturity.

A clutch of banks, including the country's largest lender State Bank of India and international ones like ANZ Banking Group and HSBC, played the lead arrangers and book-runners for the transaction, the statement said.

YES Bank's scrip was trading 2.13 per cent up at Rs 297.90 a piece on BSE, whose 30-share benchmark Sensex was trading down 0.11 per cent in afternoon trade