Yes Bank Returns to International Bond Market with Three-Year Dollar Bond Issue

Research Analyst: UJVIN NEVATIA (PROPRIETOR: NEVAT INVESTMENTS) | SEBI Registration No.: INH100009628

is set to return to the international bond market for the first time since the 2020 write-off of its Additional Tier-1 (AT1) bonds, marking an important milestone in its recovery. The bank plans to issue a benchmark-sized three-year US dollar-denominated bond and has begun investor meetings with global fixed-income investors ahead of the offering. The proposed bond issue comes as Indian banks increasingly tap overseas debt markets following the Reserve Bank of India's measures to encourage foreign capital inflows. Yes Bank's planned issuance is expected to strengthen its funding profile, diversify its sources of capital, and support future business growth. The proposed dollar bond has been assigned Ba1 by Moody's and BB+ by S&P Global Ratings, placing it one notch below investment grade. Industry & Economic Impact: Yes Bank's return to the global bond market reflects improving confidence in the bank's financial position and highlights the growing ability of Indian lenders to access international capital markets. Diversified funding sources can help banks reduce reliance on domestic deposits while supporting long-term lending growth. From an economic perspective, greater access to overseas capital enhances liquidity in the banking system, strengthens credit availability for businesses and infrastructure projects, and supports investment-led economic growth. It also reinforces India's integration with global financial markets and broadens funding options for the country's banking sector. Source: Economic Times No Recommendations