New-generation Yes Bank is in talks with Asian Development Bank for Rs 100 crore (Rs 1 billion) debt.
The bank also signed an agreement with BTS Investment Advisors of Switzerland for setting up a $30-50 million equity fund for renewable energy apart from offering advisory services to potential investors for sustainable finance and investments.
"We are in an advanced stage of negotiations with ADB for raising Tier II capital of Rs 100 crore," Yes Bank CEO Rana Kapoor said after signing the MoU with BTS in New Delhi on Thursday.
The bank is also planning an IPO for raising about Rs 300 crore in three months, which will result in dilution of stakes of both promoters and foreign investors by 25 per cent.
The bank is raising capital to meet the stringent Basel-II norms to be effective from March 2007. After the IPO, the bank's capital base will go up to Rs 517 crore (Rs 5.17 billion) from the present level of Rs 217 crore (Rs 2.17 billion).
The bank has a capital adequacy ratio of 20 per cent at present and the additional capital was required in view of the increase in loan advances.
At present, promoters Rana Kapoor and Ashok Kapur hold about 52.5 per cent, Rabobank of Netherlands hold 20 per cent while three private equity investors -- CVC International, Chrys Capital and AIF Capital -- has 25 per cent stake in the new generation private bank.
Kapoor said the proposed equity fund -- Indian Renewable Energy Enterprise Development Fund -- will be set up in three months from funds generated by European investors. Yes Bank and BTS will manage the fund, which will invest in both equity and debt of projects in energy sector.
