Tinkoff Pummeled as Card Business Model at Risk: Russia Credit
This article is for subscribers only.
Investors punished Tinkoff Credit Systems, driving borrowing costs to an eight-month high, as Russian lawmakers’ plans to restrict charge cards fueled concern the lender’s business model is at risk.
The yield on Tinkoff’s 2018 dollar debt jumped 135 basis points on Nov. 15 and another seven today to 11.95 percent, the highest since March. The rate on a JPMorgan Chase & Co. index of emerging-market financial industry debt stood at 5.68 percent. Shares in TCS Group Holding Plc, which owns Tinkoff, sank as much as 47 percent on Nov. 15, less than four weeks after its initial public offering in London.