InvestorQ : Why has IndusInd Bank cancelled its AT1 Bonds program? Is it connected to Yes Bank issue?
manisha Kolvenkar made post

Why has IndusInd Bank cancelled its AT1 Bonds program? Is it connected to Yes Bank issue?

Answer
image
Mahima Roy answered.
1 year ago
Follow

In the aftermath of the Yes Bank saga, IndusInd Bank has deferred plans to raise funds via AT1 bonds. Additional Tier 1 bonds are perpetual bonds that are treated as equity capital for the purpose of adherence to Basel norms. In the case of Yes Bank, RBI has written down its AT1 bonds to the tune of Rs.10,800 crore to zero value. That means; the investors will get nothing out of their investments. This is expected to drastically impact the appetite for AT1 bonds among institutions, which has led to IndusInd cancelling its bond issue.

1 Views