Japan’s SMFG Reportedly Eyeing $1.1 Billion Boost in Yes Bank Stake
Sumitomo Mitsui Financial Group (SMFG), a major Japanese bank, is reportedly considering an additional $1.1 billion investment in India’s Yes Bank. This move could significantly increase SMFG’s stake in the Indian lender to as much as 25%, according to sources cited by Bloomberg.
As part of this potential investment, SMFG is said to be looking to acquire approximately 5% of Yes Bank shares from existing minority shareholders, including the US investment fund Carlyle Group Inc. Furthermore, SMFG may also purchase around $680 million in convertible bonds issued by Yes Bank, which would provide capital to support the Indian bank’s growth initiatives.
Should this additional investment proceed, SMFG’s total commitment to Yes Bank would reach an estimated $2.7 billion, bringing their ownership stake to roughly 25%.
Representatives for Sumitomo Mitsui Banking Corp., Carlyle, and Yes Bank have declined to comment on these reports.
Click here for more on Banking
