Sumitomo Mitsui Financial Group Inc. is weighing an additional $1.1 billion investment in Indian lender Yes Bank Ltd., according to people familiar with the matter. This comes just two months after Japan’s second-largest bank made an initial investment in the company.
SMFG is looking to acquire around 5% of Yes Bank’s shares from U.S.-based Carlyle Group Inc. and other minority shareholders, the sources said, requesting anonymity as the discussions are private. In addition, SMFG may invest about $680 million in convertible bonds issued by Yes Bank to support its growth plans.
If the deal goes through, SMFG’s total investment would rise to approximately $2.7 billion, giving it a near-25% stake in Yes Bank. The discussions are still ongoing, and no final decision has been made, the sources added. (Source: Bloomberg)