Business Standard

Credit Suisse failure unlikely to spook AT-1 bond investors in India

PNB likely to issue AT-1 bonds worth Rs 2,000 cr this week; yields not seen surging

Credit Suisse
Premium

Photo: Bloomberg

Bhaskar Dutta Mumbai
The write-down of $17 billion worth of contingent convertible bonds of Credit Suisse has brought to the fore risks surrounding Indian additional tier-1 (AT-1) 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 AT-1 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 AT-1 bonds worth Rs

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Mar 21 2023 | 7:50 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com