Yapi ve Kredi ventured for the first time into the structured market, and came out with the largest non-government bond ever placed from Turkey, according to a source close to the transaction. The deal was sized at roughly $1.2 billion, parceled into five tranches. Standard Chartered and UniCredit Group jointly lead the deal.
An eight-year final A tranche, amounting to $175 million and wrapped by Assured Guaranty, priced at 25 basis points over three month Libor. Moody's Investors Service and Standard & Poor's rated that piece Aa1' and AAA', respectively. With MBIA providing the coverage, a $200 million, eight-year final B tranche priced at 22 basis points over. Moody's and S&P both gave that piece triple-A. The C piece, Radian-insured and carrying a seven-year final, was sized at $115 million and priced at 35 basis points over. Its ratings were Aa3' and AA' from Moody's and S&P, respectively. Finally, an Ambac-wrapped eight-year final D piece hit 300 million ($396 million) - a significant upsize from 200 million - and priced at 22 basis points over. Both agencies rated the D piece triple-A.
The transaction also included an unwrapped E piece that was rumored to have been placed with two investors. With a final maturity of five years, that tranche totaled $310 million and was rated investment grade Baa2' and BBB-' by Moody's and S&P, respectively.
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