YES Bank Ltd updates on Sale of Identified Portfolio of Stressed Assets

Pursuant to the earlier decision of the Bank to declare JC Flowers Asset Reconstruction Private Limited ("JC Flowers ARC") as the base bidder for proposed sale of an identified stressed loan portfolio of the Bank aggregating to up to Rs. 48,000 Crores ("Identified Portfolio"), the Bank had used such bid of JC Flowers ARC as a base bid ("Base Bid") to conduct a transparent bidding process on Swiss Challenge basis under the aegis of the Master Direction - Reserve Bank of India (Transfer of Loan Exposures) Directions, 2021 dated September 24, 2021 for inviting challenger bids for sale of Identified Portfolio.

The Swiss Challenge process has now concluded and the Bank not having received any Challenger Bids to the Base Bid, the Board of Directors of the Bank, at their Meeting held on September 20, 2022, has approved the declaration of JC Flowers ARC as the winner of the Swiss Challenge process.

Further, pursuant to the binding term sheet signed by the Bank with JCF ARC LLC and JC Flowers ARC for strategic partnership in relation to sale of the Identified Portfolio of the Bank, the Board of Directors of the Bank, at their Meeting held on September 20, 2022, has also approved the necessary investment for acquisition of up to 19.99% equity stake in JC Flowers ARC by the Bank (in single or multiple tranches), subject to required regulatory approvals.

The Bank will now proceed towards negotiating definitive agreements for the aforesaid.

Source : Equity Bulls

Keywords

YESBank SwissChallengeProcess JCFlowersARC StressedAssetsPortfolio