Call us cynical but GlobalCapital sometimes gets a bit bored with all this fawning and flattery. And typically, for every axed banker that tells you a deal is a stunning result, another two or three can tell you why it’s not.
Not so with Hungary’s $3bn dual tranche blowout this week, sold by BNP Paribas, Citi, Deutsche Bank and JP Morgan.
There was a $14.5bn order book for the deal, which paid only a 5bp-10bp new issue concession over a curve that hasn’t budged, despite the turmoil elsewhere in central and eastern Europe over the last month.
While the wider market has been wringing its hands over the potential fallout from US and EU sanctions on Russia, the cool-headed Hungary funding team was eyeing the rotation of funds out of Russia and into the rest of CEEMEA.
They had also noticed that the lack of new CEEMEA bond issuance over the last month has made investors ravenous for new (non-Russian) paper.
Hungary was not alone in seeing the opportunity — Slovenia and Gulf Keystone Petroleum also announced roadshows this week. But Hungary got the first mover advantage.
Sometimes an issuer sticking its head above the parapet gets it blown off. But in this case Hungary read the signs and judged the market rightly, then charged forward for the benefit of not just itself but the whole CEEMEA sector.
Perhaps we’re getting carried away. Banks and funding teams are paid to do precisely this — spot opportunities and issue into them. But this week feels like one where we should suspend our natural cynicism and marvel at a job well done.