Yes Bank has received key regulatory approvals to proceed with a $850 million (Rs 8,100 crore) offshore bond offering through GIFT City, expanding its international funding options amid continued use of offshore markets by Indian lenders.
YES Bank has cleared a key regulatory step that could allow it to raise up to $850 million, or more than Rs 8,100 crore, from overseas investors through a medium-term note programme. The lender said it has received the required “no comments” letters from India International Exchange’s India INX and NSE IFSC, opening the way for the debt plan to proceed on the international securities market in GIFT City, Gujarat.
The move matters because medium-term note programmes give banks a flexible way to tap foreign currency funding in stages rather than through a single large borrowing. According to YES Bank’s exchange filing, the offering circular for the programme has been made public on the India INX and NSE IFSC websites, and links have also been placed on the bank’s own website in line with Securities and Exchange Board of India rules.
This is not the first time YES Bank has used the platform. Business Standard reported that the lender was the first bank to set up a $1 billion MTN programme on India INX’s Global Securities Market in December 2017, a milestone for India’s International Financial Services Centre. The New Indian Express also reported that YES Bank listed a $600 million bond on that market in February 2018 as part of the same programme.
The fresh approval comes as other private-sector lenders have continued to use offshore bond markets to raise capital. Business Standard reported in June that Axis Bank raised $800 million through a dual-tranche dollar bond sale under its global medium-term note programme, underscoring that international debt remains an active funding route for Indian banks.
YES Bank shares closed at Rs 22.70 in the previous trading session, down 1.35%. Market watchers say the fund-raising approval could support the bank’s capital position and may improve sentiment over time, although the effect on the share price will still depend on execution, market conditions and investor appetite.
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