Istanbul-listed Yapi Kredi sells $500mn of 5-year green eurobonds at 9.25% coupon
Yapi Kredi Bank (YKBNK), a unit of Turkish conglomerate Koc Holding (KCHOL), has sold $500mn of sustainable eurobonds (XS2445343689) due 2028 at a coupon rate of 9.25% (a spread of 486bp over US Treasuries) and a yield of 9.25%, the lender said on September 13.
Bank of America (New York/BAC), Citibank (Citigroup/New York/C), Emirates NBD Capital Limited, Industrial & Commercial Bank of China (ICBC/Shanghai/601398), ING Bank (Amsterdam/INGA) and Standard Chartered Bank (London/STAN), acted as intermediaries in the deal.
On September 12, Turkey’s government-run Vakifbank (VAKBN) sold $750mn of sustainable eurobonds (XS2677517497) due 2028 at a coupon rate of 9% (a spread of 464bp over US Treasuries) and a yield of 9.125%.
In May, unnamed sources told Bloomberg that Turkey’s central bank asked some local lenders to buy the country’s dollar bonds to prevent a CDS spike.
Sentiment on the global markets, meanwhile, remains turbulence-free.
In June 2024, Yapi Kredi is to redeem $500mn of paper (XS1634372954), sold in 2017 at a coupon rate of 5.85%.
|Yapi Kredi's outstanding eurobonds|
|Yapi Kredi Bank (YKBNK)||XS1634372954||5.85%||$500||Jun 2017||Jun 21, 2024|
|Yapi Kredi Bank (YKBNK)||XS1958649854||8.25%||$500||Mar 7, 2019||Oct 15, 2024|
|Yapi Kredi Bank (YKBNK)||XS1957348441||FRN||$322||Feb 25, 2019||Nov 25, 2027|
|Yapi Kredi Bank (YKBNK)||XS2445343689||9.25%||500||Sep 13, 2023||Oct 16, 2028|
|Yapi Kredi Bank (YKBNK) (subordinated)||XS2286436451||7.875%||$500||Jan 15, 2021||Jan 22, 2031(/26)|
|Yapi Kredi Bank (YKBNK)||XS1867595750||13.875%||$650||Jan 15, 2019||Perpetual(Jan 15, 2024)|
Table: Yapi Kredi's outstanding eurobonds.
In 2021, Yapi Kredi sold $500mn of Tier 2 eurobonds due 2031, callable in 2026, with a 7.875% coupon.
In line with local peers, Yapi Kredi, the seventh largest bank in Turkey with Turkish lira (TRY) 1.4 trillion ($51bn) of total assets at end-June, has a B-/Negative (one notch below Turkey’s sovereign rating and six notches below investment grade) from Fitch Ratings and a B3/Stable (six notches below investment grade in line with Turkey’s sovereign rating) from Moody’s Investors Service.
On September 8, Fitch updated Turkey’s sovereign outlook to stable. Updates for corporate outlooks will be released soon.