CEE Bonds

Panic selling has hit the Russia bond complex with investors dumping securities as they race to reduce their exposure to the country for fear of further sanctions.

The sell-off in Russian bonds is battering emerging markets investors, who are seeing the biggest spread widening since sanctions were first imposed on the country in 2014. Not only have the bonds of freshly sanctioned Rusal tanked but other Russian companies are selling off as investors fear they may be next, and the rot is starting to spread to the wider central and eastern Europe region as well.

The Eurasian Development Bank has embarked on a roadshow for a three to five year tenge denominated Eurobond.

Equity investor sentiment on Russia has been upended in the space of a weekend after the shock release from the US Treasury on Friday imposing a fresh set of sanctions on Russia which has torpedoed the fortunes of aluminium producer EN+ and its owner Oleg Deripaska.

Turkish real estate developer Ronesans Gayrimenkul Yatirim (RGY) has announced plans for a global roadshow ahead of a planned dollar Eurobond debut.

Turkcell İletişim Hizmetleri, the largest mobile operator in Turkey, set final terms for its $500m bond on Thursday afternoon in London.

Ukrainian steel and mining company Metinvest sold its dual tranche five and eight year bond on Wednesday, but the thin oversubscription and pricing at the wide end of final price guidance have suggested a meagre appetite for hairier bits of emerging market debt.

Turkcell İletişim Hizmetleri, the largest mobile operator in Turkey, has released initial price guidance for its 10 year dollar benchmark.

Ukrainian steel and mining company Metinvest has released initial price guidance for its dual tranche bond, which is bring printed in conjunction with a tender offer for the company’s 2021s.

Barclays has made a series of hires in its emerging markets credit business.

Turkiye Is Bankasi (Isbank) recently signaled its intention to issue, while HSBC Canada has registered a covered bond corporate entity.

Russian borrowers seem to have no trouble accessing capital markets, despite sanctions and international condemnation for the Russian government's alleged poisoning of the spy, Sergei Skripal, in the UK. But that shouldn’t surprise anyone. Despite the lip service paid to the idea of responsible investment, most investors are not so choosy.