Yes Bank withdrew its plan to raise approximately $500 million through a three-year US dollar bond issue. The bank had appointed bankers for the proposed offering just last week.
Potential investors demanded yields 30 to 40 basis points above normal rates. This surge in yield demands follows a rush of Indian lenders to the dollar debt market.
Lenders are seeking capital before the Reserve Bank of India’s dollar deposit window closes at the end of August. This concentration of offerings is currently testing investor appetite for Indian bank debt.
Yes Bank’s stock continues to trade significantly below its all-time highs.