Yes Bank is yet to decide whether to exercise its discretion over coupon payments on its Additional Tier-1 (AT-1) bonds following a Supreme Court judgment concerning the securities, the private sector lender said in a stock exchange filing on Saturday.
“While the Bank continues assessing all available options and suitable actions/ steps going forward in respect of the judgement, the Bank hereby informs that under the terms of the AT1 Bonds (as disclosed in their respective Information Memoranda), the Bank retains the right to exercise coupon discretion in respect of the Bonds,” Yes Bank said in its regulatory filing.
The bank said it was continuing to assess the judgment and evaluate available options and appropriate steps. It added that it would communicate its decision on whether to exercise coupon discretion after completing its assessment.
The disclosure comes amid queries from certain bondholders regarding coupon payments on the AT-1 bonds. Yes Bank said the terms of the bonds, as set out in their respective information memoranda, preserve the bank’s right to exercise discretion over coupon payments.
The 9% Yes Bank AT-1 bonds issued under an information memorandum dated October 17, 2017, had a coupon payment date of October 18, 2026. The bank said it had not completed its evaluation and would communicate its decision once the assessment was concluded.
The bank said it was examining the judgment in detail, including evaluating the options and actions available to it. It did not specify what course of action it would ultimately take.
Separately, Yes Bank assured investors that its day-to-day operations and customer services continued without interruption across its branches and digital channels.
The bank said it would make further disclosures as required under the Securities and Exchange Board of India’s Listing Obligations and Disclosure Requirements Regulations after completing its assessment.
