Bonanza? A possible rerating brings cheer for LVB bondholders
LVB also proposed to sell 250 crore perpetual bonds, known as riskier quasi equity papers in market parlance and rated as single B- with a negative outlook.
Synopsis
“The bank could at least be upgraded to investment grade after the merger with a strong backing from a foreign lender,” a senior executive associated with a rating business told ET. Rating companies covering the bank are now closely monitoring the takeover.
Mumbai: Investors in Lakhsmi Vilas Bank’s (LVB) debt are having an extended Diwali celebration after the central bank proposed the capital-starved lender’s merger with DBS, considered Asia’s safest financier.The Reserve Bank of India (RBI) Tuesday suspended the board of the old-school private sector lender, proposing its merger with the Singapore-based DBS Bank in the first such move in India’s banking bailout history.Those bonds offered coupons
Get Unlimited Access to The Economic Times
