Fitch reported that it has assigned a long-term BB- to Alliance Bank and Alliance Bank's Netherlands'-based subsidiary ALB Finance B.V.'s US$1.5 billion global medium-term note program for senior unsecured notes with maturity period exceeding one-year. The program also received a short-term B rating for senior unsecured notes with a maturity period shorter than one-year.

Simultaneously, the agency assigned long-term BB- to U.S. dollar-denominated bonds, which would be first time issued under the program. According to the bank press release, it expects to raise US$150 million through the upcoming issue. Market sources say that the Alliance will sell two types of U.S. dollar-denominated bonds. The deal will comprise senior notes with a maturity of five to seven years and perpetual hybrid tier one with a callable option after 10 years.

The bank has BB- issuer default rating with stable outlook, short-term B, individual D and support 3. The timely and full repayment of the notes issued by ALB Finance B.V. will be unconditionally and irrecoverably guaranteed by Alliance Bank in a trust deed between the bank, ALB and the trustee JPMorgan Corporate Trustee Services Limited. Alliance Bank is the fifth largest bank in the country in terms of assets. The bank was founded in 1993; in 2001 it was acquired by Seimar Holding Company and since this time it was growing rapidly.