Yes Bank AT1 coupon due, bondholders seek clarity

Mumbai: A coupon payment on YES Bank's additional tier one (AT1) bonds fell due just three days after the Supreme Court restored ₹8,415 crore worth of such principal instruments, but bondholders said no payment has been received, prompting them to ask Axis Trustee Services to seek an immediate clarification from the private lender. "We call upon the Trustee to obtain immediate written confirmation from Yes Bank as to whether this coupon has been paid, cancelled or remains outstanding," an association of bondholders said in its letter seen by ET.

The annual coupon on the 9% bonds fell due on October 18, while the Supreme Court order restoring the bonds came on Oc-tober 15. Another coupon payment is approaching.

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The annual coupon on 9.5% AT1 bonds is scheduled for Decem-ber 23, and bondholders have asked the trustee to obtain clarity in advance on its treatment, the relevant record date, identifica-tion of eligible beneficial owners and arrangements for payment.

The demands follow the SC's judgment upholding the Bombay HC's decision setting aside the write-down of YES Bank's AT1 bonds undertaken as part of the lender's reconstruction in March 2020.

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Bondholders have relied on the judgment, which states that the annual coupon rate would remain unaffected by the outcome of appeals and payments would have to be made in accordance with the respective information memoranda.