CEE Bonds

Turkey took delivery from Russia of the first components of its new S-400 missile system on July 12. The US is readying a new bevy of sanctions against the country, but investors say their effect will be limited.

Naftogaz hit screens on Friday to print three year dollars and five year euros, making it to market a day later than expected.

After one of Turkey’s strongest months in capital markets of the year, this weekend the country’s president shocked investors by firing the governor of Turkey’s central bank. While Turkish assets sold off sharply on Monday, they recovered during the week. But some onlookers are worried that the recovery reflects desperation for yield, not a reduction in risks to Turkey’s economy.

Naftogaz had been expected to hit the market for euros on Thursday, but leads said a busy schedule of investor calls led leads to move the deal to Friday and to consider adding a tranche of dollar funding.

Eurotorg, the Belarusian food retailer, issued its debut Russian rouble bond last week, paving the way for the Belarusian government to follow suit.

Romania entered a crowded euro bond market on Tuesday, with 12 and 30 year papers. The deals may be among the last euro issues from the emerging markets before the summer lull.

Turkish president Recep Tayyip Erdogan has fired Turkish central bank governor Murat Cetinkaya. The development has, according to capital market participants, shredded more of Turkey’s credibility and caused last week’s dollar benchmark to slump below re-offer.

Turkey returned to the market on Tuesday, raising $2.25bn of five year dollar paper with a slim new issue premium. The deal was timed to take advantage of a tremendous rally in Turkish asset prices, but not all investors are convinced.

Turkey announced a five year dollar Global benchmark on Tuesday, returning to the market for the first time since March and making the most of the rally in Turkish assets.

Ukraine Railways has benefited from investors' desperation for yield, with a sharp tightening in pricing from initial price thoughts.

Ukrainian Railways is returning to the Eurobond market for the first time in six years, hitting screens with a five year $500m global bond.

TBC Bank, Georgia’s largest, sold its first ever additional tier one (AT1) bond on Wednesday, completing a successful transaction in spite of political demonstrations taking place in the capital, Tblisi, this week.