Yes Bank plans dollar bond issue, first since 2020 AT1 write-off

Yes Bank is preparing to sell a benchmark-sized three-year US dollar-denominated note, its first international bond issue since writing off $1.1 billion (Rs 8,415 crore) of Additional Tier 1 bonds in 2020. The bank has appointed arrangers and will begin investor discussions from Monday.

The return to global debt markets tests overseas confidence after the 2020 AT1 write-off, carried out when authorities took control of the lender under a government-backed rescue. The Bombay High Court later set aside the write-off, but the Supreme Court stayed that judgment and the case is pending. Livemint reports the move follows a gradual turnaround, with Sumitomo Mitsui Banking Corp acquiring about 25 percent of Yes Bank in 2025, becoming its largest shareholder.

Yes Bank's dollar bonds are rated one notch below investment grade, Ba1 by Moody's and BB+ by S&P. S&P has a stable outlook, citing potential support from SMBC. The Economic Times notes that investor demand and pricing will signal whether global debt investors have regained confidence. Indian lenders have raised $5.27 billion from overseas markets in the past two months, helped by RBI measures to encourage capital inflows.