CEE Bonds

Credit Suisse has put two emerging markets DCM bankers at risk.

Two central and eastern European corporates announced euro trades on Friday, adding to a busy pipeline of emerging markets deals.

PKO Bank Hipoteczny may not have attracted the most overall demand in Thursday’s packed issuance window, but its covered bond was notable for having the highest spread and strongest subscription ratio of the five deals in the market.

Gazprom made full use of its newly regained fully investment grade status on Wednesday to raise a larger than indicated €750m, flat to its indicative curve. The deal is the issuer’s longest euro denominated bond to date.

The primary market was quiet on Wednesday, but activity looks set to improve as a trio of issuers from Poland and Germany mandated joint lead managers for benchmark covered bonds — to be issued in euros and sterling on Thursday.

Gazprom opened books on an eight year euro transaction on Wednesday, having recently regained three investment grade ratings for the first time in several years.

Hungary has priced its first Japanese yen deal in over a decade, achieving its lowest ever funding cost, as its love affair with Asian currencies for diversification continues.

Yapi Kredi printed its $500m five year senior bond on Monday with a new issue premium of 20bp-25bp — a hefty but necessary concession, vindicated by the deal trading around re-offer on Tuesday.

Ukrainian chicken producer MHP is looking to lock in a lower cost of funds and reduce the cost of its liabilities with a buyback of its 2020s, combined with a new issue.

Yapi Kredi shrugged off last Friday’s downgrade by Moody’s and was well on its way to selling a new five year senior bond on Monday morning, having started around 40bp back of fair value, according to a lead manager.

Vakifbank has privately placed its third Turkish lira denominated covered bond to international investment banks. The deals, which provided competitive long-term funding and came in response to onerous swaps market regulation, are likely to be mimicked by Turkey’s other main lenders.

Gazprom has mandated five banks for a euro benchmark bond with a maturity between eight and 10 years.