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

Bhaskar Dutta Mumbai
Credit Suisse

Photo: Bloomberg

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 2,000 crore on Friday, sources said.

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

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