Yes Bank is unlikely to pay coupons due this year on its Additional Tier-1 (AT-1) bonds despite a Supreme Court ruling overturning their write-off during the lender’s 2020 rescue, Reuters reported, citing two people familiar with the matter.
The bank is preparing to seek a review of the ruling, the report said, citing one of the sources, while bondholders are pressing for payment of coupons that have remained unpaid since Yes Bank wrote off the bonds six years ago.
Retail investors holding the bonds said on Thursday that they had not received coupon payments due on October 18, three days after the Supreme Court ruling, according to the report.
In a letter to Axis Trustee Services Ltd, reviewed by Reuters, investors sought clarity on the status of the coupon payments and urged the debenture trustee to intervene.
“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,” the bondholders said.