SOVEREIGN DEBT RESTRUCTURING | MASTERCLASS

A deep dive masterclass on sovereign debt restructuring, to be conducted virtually by Asian high yield bond expert Florian Schmidt.

30 June 2022 (Thu), 5pm Singapore/HK time

Italy’s UniCredit will sell its remaining 20% stake in Turkey’s Yapi Kredi Bank by end-March 2022. UniCredit will sell 18% of its stake to Turkey’s Koc Holding for €300mn ($347mn) while the remaining 2% will be sold in the open market. As per Reuters, UniCredit said that the transaction will have a low-mid single digit positive impact on its “best quality capital”, a measure of financial strength. Koc Holding and UniCredit in 2019 had agreed to unwind the joint venture through which they controlled Yapi Kredi jointly with a near 82% overall stake. “The deal is coherent with the group’s strategy of exiting areas with low capital returns, high earnings volatility and no active control,” BofA analyst Alberto Cordara said.

UniCredit’s bonds were flat with its EUR 7.5% Perp at 119.3, yielding 3.16%. Yapi Kredi’s bonds were stable with its USD 13.875% Perp at 115.15, yielding 6.28%.

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