YES Bank YES Bank in final stages of closing $1 billion fundraiser from Carlyle, Advent post ARC deal
Mumbai: YES Bank is in the final stages of closing $1 billion equity fundraiser from private equity firms Carlyle and Advent International after it said it has selected an asset reconstruction company belonging to private equity firm JC Flowers as the base bidder for the sale of bad loans worth Rs 48,000 crore ($6.01 billion), media reports said.
The private equity firms are likely to buy a 10 percent stake each in the private lender, reported MoneyControl.
“In accordance with the guidelines issued by the Reserve Bank of India, the Bank proposes to run a transparent bidding process on Swiss Challenge basis for sale of such portfolio using the JC Flowers ARC’s bid as the base bid,” it said in an exchange notice on July 15.
Under The Swiss Challenge method of bidding, the highest bid in the first round of an auction is considered the base price for other bidders before the second round of auction.
According to the Reserve Bank of India (RBI) guidelines, any asset reconstruction company (ARC) or other third parties which place the highest bid in second round of auction gets awarded the asset.
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