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YES Bank keeps AT-1 coupon payment decision open, says it has coupon discretion

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YES Bank keeps AT-1 coupon payment decision open, says it has coupon discretion

YES Bank keeps AT-1 coupon payment decision open, says it has coupon discretion

YES Bank is yet to decide on the payment of coupons on its AT-1 bonds after the Supreme Court set aside the 2020 write-off of Rs 8,415 crore. The bank said it retains coupon discretion under the bond terms and is assessing the judgment and its implications and shall communicate the final decision in due course.

Bank had earlier indicated 240-bps pro forma hit to CET1 from bond reinstatement

Q2 profit of Rs 1,080 crore would have turned into a Rs 5,217-crore loss on a pro forma basis

यस बैंक ने इस बॉन्ड को एटी1 बॉन्ड को राइट ऑफ कर दिया था।

Private sector lender YES Bank has kept its decision on coupon payments on its Additional Tier-1 (AT-1) bonds open, says it retains the right to exercise coupon discretion under the terms of the bonds, while also assessing the implications of the Supreme Court judgment that set aside the Rs 8,415-crore write-off of the securities in 2020 on October 15, 2026. “Under the terms of the AT-1 Bonds , the Bank retains the right to exercise coupon discretion in respect of the Bonds,” YES Bank said in an exchange filing. Advt

The lender said that since its evaluation and assessment had not been completed, it would communicate its decision, if any, on whether or not to exercise coupon discretion after completing the assessment. The disclosure comes after the scheduled October 18 coupon payment date for YES Bank's 9% AT-1 bonds issued under the October 17, 2017 Information Memorandum.


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