Cantor Fitzgerald is led by Anshu Jain, the former co-CEO of Deutsche Bank AG.
Yes
Bank has picked Cantor Fitzgerald, IDFC Securities and Ambit to
help the lender raise as much as $2 billion for bolstering capital
buffers, people with knowledge of the matter said.
The
bank, staggering under the weight of soured loans, has been plagued
by worries about its asset quality and uncertainty about efforts to
raise new capital. It’s trying to shore up a core equity capital
ratio that’s barely above a regulatory minimum of 8 per cent.
The
lender’s shares surged the most since November 27 on Wednesday as
investors were encouraged by the move to pick bankers, while its 2023
dollar bond gained the most since January 15. Yes Bank, led by Chief
Executive Officer Ravneet Gill, has lost more than 80 per cent of its
market value in the past year on concerns about its ability to raise
funds.
“As
credibility and sentiment get eroded, time is running out for the
bank to raise capital,” according to Bloomberg Intelligence analyst
Diksha Gera.
“With
the bankers for fund raising in place Yes Bank needs to move quickly
to avoid panic among credit investors, which could cause unwanted
liquidity pressure.” Cantor Fitzgerald is led by Anshu Jain, the
former co-chief executive officer of Deutsche Bank AG until 2015,
while Gill headed the German bank’s Indian operations before he
joined Yes Bank last year. The Economic Times reported the
appointment of the banks earlier.
A
spokesman for Yes Bank and spokeswoman for Ambit declined to comment
about the fund raising plans. A representative for IDFC
Securities and spokeswoman for Cantor didn’t immediately
respond to emails seeking comment.
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