The write-down of $17 billion worth of contingent convertible bonds of fore risks surrounding Indian additional tier-1 (AT1) bonds, which are instruments of a similar nature.
Analysts said following regulatory changes taken after the YES Bank fiasco in 2020, the domestic landscape for AT-1 bonds has significantly improved. As such, the latest episode surrounding Credit Suisse is unlikely to have a substantial impact on domestic AT1 bond issuances by banks.
In the first such bond sale following the Credit Suisse episode, state-owned lender Punjab National Bank is set to issue AT1 bonds worth ₹2,000 crore on Friday, sources said.
Treasury officials expect the coupon for PNB's bonds to be set around 8.50 per cent, not much above the 8.25 per cent set for SBI's last AT1 bond sale on March 8.
Considering the fragile sentiment currently prevailing in the global banking sector, the expected rate of interest for PNB's AT1 upcoming issuance suggests that domestic investors for these securities are not too concerned.
This story is from the March 22, 2023 edition of Business Standard.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the March 22, 2023 edition of Business Standard.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
Spices under scanner: Govt panel gives report
The govt is launching an initiative to ensure India's exports meet importing countries' tolerance limits
AstraZeneca vaccine: The controversy continues
The controversial AstraZeneca Covid-19 vaccine, which was banned by several countries across the globe after multiple cases of blood clots were reported in patients who were administered the jab, is back in the spotlight.
BRIDGING THE GAP
Why the surge of hybrid cars is being seen as an essential transition phase to electric
M&M, TaMo, Maruti: Auto stocks to stay in fast lane
The uptrend in auto sector to continue in the near term, believe analysts
Parcel fraud: Suspect a scam call? Disengage immediately
Verify the call's authenticity; resist pressure to pay up or share sensitive information
High growth and margin expectations to drive Trent
THE COMPASS DEVANGSHU DATTA Zudio could lead to further upgrades.
FOPs ready to roll out bit-sized Reits
Many real estate ownership platforms to file with markets regulator under recently notified norms
Why are RBI, other banks on a gold-buying spree?
The Reserve Bank of India (RBI), like most other global central banks, is on a gold buying spree.
Mkts slide after fresh record highs
The National Stock Exchange (NSE) benchmark Nifty rose for the second day underpinned by gains in index heavyweights to hit fresh record highs on an intraday basis but came off from the day's highs to end the trading session with losses.
ChrysCapital closes its $700 mn continuation fund
ChrysCapital on Tuesday closed its $700 million continuation fund, which will allow the private equity firm to hang onto its stake in the National Stock Exchange (NSE), which it first bought in 2016.