CEE Bonds

Turk Eximbank on Thursday* opened books on a new six year bond following the Central Bank of Turkey’s decision to hike rates by 75bp the day before.

Eastern European low cost airline Wizz Air has received its first ever credit rating, a likely precursor to a bond issue.

Investors in Rusal’s bonds have lost this round. But the game of investing in Russia has not finished yet.

Two corporate issuers are meeting investors for euro denominated bonds this week as the corporate funding season gathers pace.

With the shock of the latest round of Russian sanctions receding a little, EM investors are already seeking out the opportunities that last week’s volatility created. Even one holder of the sanctioned and problematic Rusal debt said he has increased his exposure to Sberbank.

Turkish real estate developer Ronesans Gayrimenkul Yatirim has released initial price guidance on its benchmark five year bond, which a rival syndicate has called wide but a lead said was the pick-up investors are demanding over Turkish international corporates.

EPIF Infrastructure, has released initial price guidance for a six year fixed rate euro benchmark.

Turkish real estate developer Ronesans Gayrimenkul Yatirim is still assessing investor feedback and is yet to release initial price guidance, despite having told the market that it was looking to price its bond “as early as” Wednesday.

Kazmunaygas’ (KMG) $3.25bn bond on Tuesday proved to be a beneficiary of the latest round of US sanctions against Russia sanctions, as investors sought a new oil play away from the volatility surrounding assets from the proscribed state.

The US Treasury’s targeting of Rusal in its latest round of sanctions was far from the random hit that investors are claiming. The US has demonstrated its power over the dollar-based financial system — and it has no need to do further damage.

Kazakhstan’s national oil company Kazmunaygas, rated Baa3/BB-/BBB-, has released initial price guidance for its dollar senior unsecured triple tranche 2025, 2030 and 2048 issue.

Turkish real estate developer Ronesans Gayrimenkul Yatirim has set the tenor on its benchmark dollar bond at five years, and is expecting to print the note “as early as tomorrow”.