Obligation YesCorp 9% ( INE528G08394 ) en INR

YesCorp

100 % ⇌

Inde

INE528G08394 ( en INR )

9% par an ( paiement annuel )

Perpétuelle

Prospectus brochure de l'obligation Yes Bank INE528G08394 en INR 9%, échéance Perpétuelle

1 000 000 INR

54 100 000 000 INR

18/10/2026 ( Dans 197 jours )

Yes Bank est une banque commerciale privée indienne dont le siège est à Mumbai, offrant une gamme de services bancaires aux particuliers, aux entreprises et aux institutions.

L'instrument financier en question est une obligation identifiée par le code ISIN INE528G08394, émise par Yes Bank, une institution financière privée de premier plan basée en Inde qui a récemment traversé une période de restructuration significative de son bilan, dont l'émission s'est déroulée en Inde, et est actuellement cotée à 100% de sa valeur nominale sur le marché, libellée en roupies indiennes (INR), offrant un taux d'intérêt annuel fixe de 9%, cette émission représentant une taille totale de 54,1 milliards de roupies indiennes avec une taille minimale d'achat fixée à 1 million de roupies indiennes, et se caractérise par une maturité perpétuelle avec une fréquence de paiement des intérêts annuelle.

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.