By Rebecca Melvin
New York, Jan. 15 – Turkey’s Yapi ve Kredi Bankasi AS (Yapi Kredi) priced $500 million of 7 7/8% fixed-rate resettable Tier 2 notes due Jan. 22, 2031 (expected ratings: Caa2//B-) at par, according to a market source.
The notes are non-callable until Jan. 22, 2026. After the call date until maturity, the rate will be fixed at the Constant Maturity Treasury index plus a reset margin of 741.5 basis points.
Pricing was tightened from guidance in the area of 8 1/8% and initial talk in the 8˝% area. Order books at the time the deal was launched were more than $3.2 billion.
The joint lead managers and bookrunners for the Rule 144A and Regulation S deal are BNP Paribas, BofA Securities, HSBC, MUFG, JPMorgan and UniCredit Bank.
The proceeds will be used for general corporate purposes, which may include redemption of the issuer’s outstanding $500 million fixed rate resettable Tier 2 notes due 2026.
Yapi Kredi is an Istanbul-based lender.
| Issuer: | Yapi ve Kredi Bankasi AS
|
| Description: | Fixed-rate resettable Tier 2 notes
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| Amount: | $500 million
|
| Maturity: | Jan. 22, 2031
|
| Bookrunners: | BNP Paribas, BofA Securities, HSBC, MUFG, JPMorgan and UniCredit Bank
|
| Coupon: | 7 7/8%
|
| Price: | Par
|
| Yield: | 7 7/8%
|
| Calls: | On Jan. 22, 2026
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| Rate reset date: | Jan. 22, 2026
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| Reset margin: | Constant Maturity Treasury index plus 741.5 bps
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| Trade date: | Jan. 14
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| Settlement date: | Jan. 22
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| Expected ratings: | Moody’s: Caa2
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| Fitch: B-
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | Guided to 8 1/8% area from initial talk in the 8˝% area
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