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Yes Bank prepares three-year dollar bond sale after ratings improve
The lender plans to start investor discussions from Monday for a benchmark-sized three-year US dollar note, with the new debt expected to carry ratings below investment grade.
Yes Bank is preparing to return to the international bond market for the first time since the bank wrote off troubled local bond debt in 2020, Bloomberg reported, citing people familiar with the matter, according to LiveMint Markets.
The bank has appointed arrangers for a potential dollar bond issue and plans to sell a benchmark-sized three-year US dollar-denominated note, with discussions with fixed-income investors scheduled to begin Monday.
The proposed issuance would come with ratings below investment grade, LiveMint Markets said. Yes Bank’s existing dollar bonds are rated Ba1 by Moody’s and BB by S&P, both one notch below investment-grade status.
The move follows increased overseas fundraising by Indian banks, which raised about $5.27 billion over the past two months, helped by measures introduced by the Reserve Bank of India in June to encourage capital inflows and support the rupee. LiveMint Markets also noted Yes Bank permanently wrote off its Additional Tier 1 debt in March 2020 as part of a rescue package involving State Bank of India and has since strengthened its turnaround, including multiple upgrades to the ratings of certain rupee-denominated debt.