India’s Yes Bank has secured a US$255mn syndicated loan that it intends to use for trade finance as well as general corporate purposes.

The lead arrangers and bookrunners on the transaction are ANZ, Citigroup, Commerzbank, Doha Bank, Emirates NBD, HSBC, Landesbank Baden-Wurttemberg, Standard Chartered, State Bank of India, and Wells Fargo.

More than 50% of the repayments are to be made in the second year, a spokesperson for the bank tells GTR.

The loan has been secured at a benchmark price for loans in India, the spokesperson adds, though he declined to give a price.

It will be a dual currency loan: Yes Bank will receive US$180mn and €58mn in total.

The finance will come in two dual currency tranches over two years. In the first year, Yes Bank will receive US$75mn and €34mn while in the second year it will receive US$105mn and €24mn.

The first tranche has a maturity of two years while the second tranche has a maturity of one year.

The bank will use the loan to take advantage of the Reserve Bank of India’s (RBI) new swap facility being offered to Indian Banks.

To encourage the inflow of dollars into India, the RBI is offering to swap their foreign currency borrowings to rupees at 100 bps below the market rate.

This will make the cost of these borrowings extremely competitive compared to finance raised in India, Yes Bank’s spokesperson outlined.

The bank is the first borrower to take advantage of this new facility, which came into effect in September this year.