Perpetual Bonds

Bank of Baroda planning to raise Rs 5 billion through perpetual bonds

India's Bank of Baroda plans to raise at least 5 billion rupees ($62.52 million) through sale of Basel III compliant additional Tier I perpetual bonds, say three merchant bankers

Regulation by circulars?

The recent semi-public exchanges between Sebi and DFS raise several questions about the legislative function of regulators that need careful consideration

Best of BS Opinion: Loan moratorium case, AT1 bonds may lose sheen & more

Here's a selection of Business Standard opinion pieces for the day

A good glide path

AT1 bonds may lose sheen but Sebi takes the right call

'Relaxed valuation rule for perpetual bonds to help avoid panic redemption'

Easing of valuation rule for perpetual bonds by Sebi will provide a breather to the mutual fund industry

Sebi eases valuation norms for perpetual bonds on Finance Ministry push

Capital market regulator Sebi has eased valuation rule pertaining to perpetual bonds

After govt's intervention, Sebi eases valuation norms for AT-1 bonds

Implementation of 100-year valuation norm pushed to April 2023

AT1 bonds: Over Rs 11,000 cr worth call option due for SBI in FY22

Here is look at outstanding AT1 bonds of select banks and amount for call option in due in FY22

Advisors push AT1 bonds to HNIs to take advantage of surge in yields

Yields of perpetual bonds issued by State Bank of India and Bank of Baroda, for instance, have gone up by as much as 80-90 basis points (bps), and top recommendation lists of most managers

Bond standoff exposes flawed policy

Sebi is not wrong in expressing a desire to draw an empirical bright line for an outer limit, in order to be able to compute yields, and thereby value the bonds

Best of BS Opinion: Valuing AT1 bonds, SC right to protect IBC, and more

Here's a selection of Business Standard opinion pieces for the day

Explained: What are perpetual bonds & why have new Sebi rules irked FinMin?

Sebi's new rules around mutual fund (MF) investments in these bonds have kicked up a storm

Valuing AT1 bonds

A sudden change in the metrics will be disruptive

Finance ministry asks Sebi to revoke 100-year maturity rule on AT1 bonds

Revised norms to treat all perpetual bonds as 100-year tenor to be withdrawn

YES Bank recast scheme: Additional tier-I bonds see spike in yields

Market participants say ask yields for other large-sized banks' AT-1 bonds have hardened further

YES Bank bondholders say will withdraw court plea if RBI accepts offer

Overall, more than Rs 8,000 crore of investments are exposed to YES Bank's AT-1 bonds

YES Bank fallout: AT-1 bonds see spike in yields post RBI's proposed scheme

State Bank of India's bonds see 130 basis points jump in yields since Friday

YES Bank crisis: Sebi may impose curbs on MFs' exposure to perpetual bonds

According to the data sourced from primemfdatabase.com, MFs' exposure to the AT-1 bonds - also called perpetual bonds - stood at Rs 37,687 crore as of January 31, 2020

Bharti Airtel subsidiary to raise additional $250 mn via perpetual bonds

This amount will be in addition to existing securities of $750 million (around Rs 5,343 crore) that the company has raised recently

Perpetual bonds offer higher coupon but carry recall risk

The coupon rate on perpetual bonds is attractive, but they come with a call option, and are not for investors who want liquidity