Yes Bank AT1 coupon due, bondholders seek clarity

The annual coupon on the 9% bonds fell due on October 18, while the Supreme Court order restoring the bonds came on October 15.

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.

YES Bank's bondholders have not received recent coupon payments which were due shortly after a court ruling. The Supreme Court restored the value of these bonds, raising uncertainty among investors. Bondholders have requested that the trustee clarify the status of unpaid coupons. Another coupon payment is also approaching, adding to the urgency of the situation. Bondholders expect payments to proceed in accordance with the court's ruling and official guidelines.

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.

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.