Yes Bank shares jump 4% after report says SMBC set to infuse Rs 16,000 crore

Yes Bank shares jump 4% after report says SMBC set to infuse Rs 16,000 crore -

1) The proposed infusion by the Japanese financial giant is aimed at strengthening Yes Bank's balance sheet, and is seen to be a precursor to SMBC taking an ownership position, ET reported 2) As part of the debt funding, SMBC will opt for yen-dominated bonds equivalent to Rs 8,500 crore, priced below 2 percent, to ensure low-cost, long-term funding, ET cited a source as saying. The equity infusion of Rs 7,500 crore will be done through a foreign currency convertible bonds (FCCBs), in order to boost its capital, the source added. 3) This will be in addition to the Rs 13,500 crore that SMBC has committed to pay the lender's existing shareholders, including State Bank of India (SBI) and others, for acquiring a 20 percent stake in Yes Bank, the report further said. 4) The Rs 16,000-crore infusion will be reflected in Yes Bank's books, while the Rs 13,500 crore will be paid to the bank's shareholders to facilitate their exit, according to the report. 5) This is for information. This is not a buy/sell recommendation. Although this is positive news for the stock and stock reacted in terms of positive price appreciation. Thank you, Technofunda24