INSUBCONTINENT EXCLUSIVE:
the possibility of advising the bond trustee to legally challenge the write-down proposal, sources with direct knowledge of the matter told
ET.
Their main contention is that tier-I bonds are senior to equity, and cannot be written down without reducing equity.
Fearing such a move
debenture holders are extremely apprehensive the issuer bank will not be in a position to honour their obligations to the holders of AT-1
the person said.
Investors believe that the cost of issuing similar bonds would climb by as much as 200 basis points from previous
compliant with Basel III norms, a global standard for banks, stand to lose their money if the RBI draft restructuring scheme is
Yes Bank perpetual bonds have not been traded in the past few days, with a particular perpetual series falling under the said category
yielding 19.11% on March 2.
In the past two months, these bonds traded as high as 38%.