Axis Trustee asks Yes Bank to restore ₹8,415 crore AT1 bonds
In short
Axis Trustee Services Ltd asked Yes Bank on 28 October to put ₹8,415 crore of AT1 bonds back into its register of holders. The trustee said the bonds should be restored to how they were before the March 2020 write-off.
This matters to bond investors and Yes Bank because the bank has only three working days to respond. The reporting does not say what Yes Bank will do next.
What the reporting says
Axis Trustee Services Ltd asked Yes Bank’s managing director and board on 28 October to restore ₹8,415 crore of AT1 bonds to the register of holders, according to the notice. The trustee represents investors holding the bonds and wants the status changed back to what it was before the March 2020 write-off. The notice gives Yes Bank three working days, but the next step is not stated.
Why it matters
Axis Trustee Services Ltd sent a notice on 28 October to Yes Bank’s managing director and board over ₹8,415 crore of AT1 bonds. The trustee, which represents bond investors, asked the bank to restore the bonds in its register of holders to their pre-March 2020 write-off status. The reporting does not say whether Yes Bank has responded or whether the bonds will actually be reinstated.