Obbligazione YesCorp 9% ( INE528G08394 ) in INR

YesCorp

100 INR ⇌

India

INE528G08394 ( in INR )

9% per anno ( pagato 1 volta l'anno)

perpetue

Prospetto opuscolo dell'obbligazione Yes Bank INE528G08394 en INR 9%, scadenza perpetue

1 000 000 INR

54 100 000 000 INR

18/10/2026 ( In 197 giorni )

Yes Bank è una banca privata indiana con sede a Mumbai, nota per la sua focalizzazione sul settore corporate e sui servizi bancari al dettaglio.

Analisi Dettagliata dell'Obbligazione Perpetua di Yes Bank: Un'Opportunità nel Mercato Indiano Viene presentata un'analisi dettagliata di un'obbligazione perpetua emessa da Yes Bank, un'istituzione finanziaria significativa con sede in India. Yes Bank è una banca del settore privato indiano, fondata nel 2004. Nonostante abbia affrontato significative sfide finanziarie e una ristrutturazione supervisionata dalla Reserve Bank of India (RBI) e sostenuta da un consorzio di banche indiane nel 2020, l'istituto è riuscito a stabilizzare la propria posizione e continua a operare come un attore rilevante nel panorama bancario indiano, servendo una vasta clientela di imprese e privati. L'obbligazione in questione, identificata dal codice ISIN INE528G08394, è stata emessa in India e la sua valuta di denominazione è la Rupia Indiana (INR). Questa obbligazione offre un tasso d'interesse annuale fisso del 9%, con pagamenti di cedole effettuati una volta all'anno. La sua natura di obbligazione perpetua implica che non ha una data di scadenza definita, offrendo un flusso di reddito potenziale a tempo indeterminato, sebbene ciò comporti anche specifiche considerazioni di rischio legate alla callability o alla subordinazione. L'emissione ha una dimensione complessiva significativa, pari a 54.100.000.000 INR, e il taglio minimo di acquisto per gli investitori è fissato a 1.000.000 INR. Attualmente, il prezzo di mercato di questa obbligazione è pari al 100% del valore nominale, indicando che viene scambiata alla pari. Questa obbligazione rappresenta un'opzione per gli investitori interessati a un'esposizione al mercato indiano e disposti ad assumere il rischio associato a uno strumento perpetuo e al profilo di credito di Yes Bank, in cambio di un rendimento nominale annuo del 9%.

Update on Investments in Yes Bank Limited NCD (26th M arch 2020)

Recent Event
The Debt Securit ies of Yes bank held by Sundaram M ut ual Fund in t w o of it s schem es Sundaram
Equit y Hybrid Fund & Sundaram M edium Term Bond Fund w ere dow ngraded on 06th M arch 2020 t o
" D" denot ing Default by t he Credit rat ing agencies. Sundaram Equit y Hybrid Fund had invest m ent s in
Basel III Addit ional Tier I Bonds (ISIN - INE528G08394) and Basel II Low er Tier II Bond (ISIN -
INE528G08246) and Sundaram M edium Term Bond (ISIN - INE528G08394) had invest m ent s in Basel
III Addit ional Tier I Bonds.
The rationale for dow ngrading on 06th M arch 2020 and its impact
The rat ing agencies have fact ored t he recent developm ent s in t he Bank, t he st eps t aken by Reserve
Bank of India (RBI) and t he inform at ion and clarificat ion provided by t he bank's m anagem ent . RBI and
Governm ent of India, on M arch 05, 2020 has im posed m orat orium on Yes Bank under sect ion 45 of
t he Banking Regulat ion Act , 1949. Furt her, Significant ly high Gross NPAs and st andard BB and below
rat ed exposures, w hich could likely t o increase furt her in t he near t erm ; and Delays in capit al raising
am id increase in st ressed exposures w ere addit ional key rat ing drivers t hat led t o t he m arkdow n of
t he securit ies.
Due t o t he rat ing dow ngrade, t he price provided by t he rat ing agencies were valued at ZERO and t he
sam e w as considered for valuat ion from t hat dat e. Also, provision for Int erest accrued has been m ade
w it h no furt her accrual of int erest .
Reconstruction Scheme and its impact
" Yes Bank Lim it ed Reconst ruct ion Schem e 2020" w as approved by t he Cent ral Governm ent and
not ified in t he Official Gazet t e on M arch 13, 2020.
The Bank w as deem ed t o be non-viable or approaching non-viabilit y and accordingly, AT 1 Bonds
w ould need t o be fully w rit t en dow n perm anent ly before undert aking any reconst ruct ion of t he Bank.
In light of t he above provisions of t he Basel III Circular, t he Perpet ual Subordinat ed Basel III Com pliant
Addit ional Tier I Bonds issued by t he Bank for an am ount of Rs. 3,000 crores on Decem ber 23, 2016
and t he Perpet ual Subordinat ed Basel III Com pliant Addit ional Tier I Bonds issued by t he Bank f or an
am ount of Rs. 5,415 crores on Oct ober 18, 2017 have been fully w rit t en dow n and st and ext inguished
w it h im m ediat e effect .
Due t o t he above scenario, t he Basel III Addit ional Tier I Bonds (ISIN - INE528G08394) holdings in
Sundaram Equit y Hybrid Fund & Sundaram M edium Term Bond Fund w ere w rit t en dow n in t he
schem e along w it h t he Int erest accrued.
Cost of
Accrued
Scheme
ISIN
Security
Rating
Qty investments interest
Equit y
INE528G08394 Yes Bank Lt d - 9% - 18/ 10/ 2022 ICRA D
70
7 Cr
0.24 Cr
Hybrid
M edium
INE528G08394 Yes Bank Lt d - 9% - 18/ 10/ 2022 ICRA D
20
2 Cr
0.07 Cr
Term Bond

Current Update
On 24th M arch 2020, ICRA has upgraded t he rat ing of Basel II Low er Tier II Bond (ISIN - INE528G08246)
t o " BB+" from " D" w hereas CARE cont inued t o rat e it at " B" .
The rationale for upgrading on 24th M arch 2020 and its impact
ICRA derived t he com fort from rem oval of m orat orium w .e.f. M arch 18, 2020, changes in shareholding
and t he reconst it ut ion of it s Board, equit y infusion of Rs. 10,000 crore from St at e Bank of India (SBI)
and ot her dom est ic financial inst it ut ions and t he benefit from t he w rit e off of it s Basel III Addit ional
Tier 1 (AT-I) Bonds t o t he t une of Rs. 8,415 crore.
ICRA has upgraded t he rat ings before com plet ion of t he curing period as an except ion, considering
t he reconst ruct ion of t he bank undert ook by RBI under Sect ion 45 of t he Banking Regulat ion Act , 1949.
General Points on Valuation
AM FI appoint ed valuat ion agencies generally provide st andard haircut rat es in case of dow ngrade t o
" D" , based on t he m at rix recom mended by AM FI. The valuat ion adjust m ent w ould only reflect s t he
est im at ed realizable price of t he relevant securit ies on t he dat e of valuat ion and does not indicat e any
reduct ion or w rit e-off of t he am ount repayable by t he issuers.
The valuat ion agencies had provided 100% haircut for t he Basel II Low er Tier II Bond (ISIN -
INE528G08246) from 6h M arch 2020 upt o 25th M arch 2020 and revised t he haircut t o 50% w it h effect
from 26th M arch 2020 on account of rat ing upgrade for t he securit y.
SEBI circular dat ed 22nd M arch 2019 provides t hat AM Cs m ay deviat e from t he indicat ive haircut s
and/ or t he valuat ion price for m oney m arket and debt securit ies rat ed below invest m ent grade
provided by t he valuation agencies subject t o t he condit ions t hat rat ionale for deviat ion shall be
disclosed t o t he Board of AM C and Trust ees and display on it s w ebsit e for t he inform at ion t o t he
invest ors, t he rat ionale along w it h inform at ion about t he securit ies valued and such ot her inform at ion
set out in t he circular.
In com pliance w it h t he said requirem ent , w e are providing t he f ollow ing rat ionale and inform at ion
about our valuat ion of t he securit y:
Rationale
1. General 90 day curing period w as ignored by t he rat ing agency.
2. Anot her agency, Brickw ork Rat ings had cont inued t he rat ing as " D" for all similar bonds issued
by Yes Bank. The bond held by Sundaram M F is not rat ed by BWR.
3. In our view , t he quant it y held by t he scheme is very minimal and it w ould be difficult t o sell
t he securit y in t he m arket in t he near fut ure.
4. Though t here are posit ive indicat ors, complet e revival of t he bank and it s abilit y t o meet s it s
com m it m ent could be gauged over t he period of next t hree t o six m ont hs.
In view of t he above fact ors, it w as decided t o cont inue t he 100% hair cut valuat ion of t he securit y.
We w ill cont inue our m onit oring of developm ent s in t he bank.

Prescribed information about the security as on 26th M arch 2020
Scheme
ISIN
Security
Rating
Price at Price
Impact
of
Name
w hich
post
deviation
on
the
haircut *
scheme NAV
Security
Amount
%
w as
(Rs.
In
valued
Crore)
Sundaram INE528G08246 YES BANK - CARE B
Nil
Rs.50 per 1.00
0.07
Equit y
NCD-
securit y
Hybrid
9.90%-
Fund
31/ 10/ 2022
* assum ing face value as Rs. 100 per securit y
Not e: - Since t he securit y is valued at ZERO, t reat ment of int erest accrued and fut ure accrual as
specified in SEBI Circular SEBI/ HO/ IM D/ DF4/ CIR/ P/ 2019/ 102 dat ed 24th Sept em ber 2020 is also
considered ZERO.

Place: Chennai
For Sundaram Asset M anagement Company Limited
Dat e: 26 M ar 2020

P Sundararajan

Secret ary & Com pliance Officer
For m ore inform at ion please
Corporate
1st & 2nd Floor, Sundaram Tow ers, 46, Whit es
cont act :
Office:
Road, Royapet t ah, Chennai-14.
Sundaram Asset M anagement
Company Ltd

Cont act No. (India) 1860 425 7237,

(Invest m ent M anager t o
Sundaram M ut ual Fund)

(NRI) +91 44 2831 0301 Fax: +91 44 2841 8108.
CIN: U93090TN1996PLC034615
w w w .sundaram m ut ual.com

Regd.

Office:
No. 21, Pat ullos Road, Chennai 600 002.
M utual Fund investments are subject to market risks, read all scheme related
documents carefully.