Yesterday, Bank CenterCredit announced its plan to place T10bn 10-year bonds with coupon rate of 9%.
Fitch assigned an expected long-term rating of B(EXP) to the upcoming bond issue, which corresponds to the long-term local currency IDR of B. According to the agency, the bank has 'weak asset quality, moderate capitalization and profitability, reasonable coverage ratio of bad loans, solid liquidity cushion' which are reflected in its ratings.
Recall that in March the bank was able to issue only T6mn 7-year bonds at 8.5% and in December it placed T4.8bn 4-year bonds at 9.6%. This implies inverted yield curve of the bank. We expect the placement yield of upcoming bonds to be at 10-11.0%.