EM CEEMEA CREDIT: YapiKredit: New Issue PNC5.5 AT1 - FV
Aug-27 08:23
(YKBNK: Ba3/-/BB-)
IPT: 8.75% Area
FV: 8.45%
- YapiKredit issuing a USD PNC5.5 AT1. YapiKredit already has a 9.743% PNCApr29 which is around 7.96% yield or z-spread of 455bp. In terms of peers Halkbank (Ba3/-/B+) 9.3% PNC Jun30 is at 8.29% or z-spread 485bp, Vakif Bank (Ba3/-/B+) 10.117% PNC APR29 is around 7.95% yield or z-spread of 455bp, Akbank 9.3686% PNC Mar29 is around 7.73% yield or 432bp z-spread and Turkiye Sinai Kalinma Bankasi (Ba3/-/B+pos) 9.75% Mar29 is round 8.1% yield or 470 z-spread. Adjusting for maturity and ratings we estiamate a FV of 8.45% yield or z-spread of 505bp.
- As a reminder during 2Q 25 earnings season, Turkish banks reported higher swap costs as a result of rates volatility and Yapi Kredit was no different. For Yapi Kredit, during 2Q 25 swap costs were +43% QoQ and NIM weaker at 1.89%, down from 2.09% at the end of Q125. F&C +16% QoQ, resulted in core revenues +8% QoQ. Net income was reported at TRY11.3bn -1% QoQ.
- NPL’s in Q225 were steady at 3.4%. Capital ratio’s were slightly weaker with CET-1 at the end of 2Q 25 at 9.9% from 10.7% at the end of 1Q 25 and CAR 13.1% from 14.4%.
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