SMFG to invest $1.1bn more in Yes Bank, raising stake to near 25%

Sumitomo Mitsui Financial Group (SMFG) plans a $1.1 billion follow-on investment in YES BANK across two tranches. The move will raise SMFG's total commitment to $2.7 billion and bring its ownership stake to nearly 25%, just below SEBI's 26% threshold that would trigger a mandatory open offer.

The investment comprises two parts: a $420 million equity acquisition of a 5% stake from Carlyle Group and other minority shareholders, and up to $680 million in convertible bonds to support Yes Bank's growth strategies.