CEE Bonds

Two Russian issuers forged ahead with plans to issue Eurobonds this week, despite increasing noise around Russian sanctions that threaten to push spreads wider.

The Republic of Poland exceeded its own and its leads’ hopes when it issued its second green bond this week. Piotr Nowak, undersecretary of state at Poland's finance ministry, told GlobalCapital that with 41% of green accounts participating, the sovereign had succeeded in diversifying its investor base.

Republic of Romania offered investors a rare opportunity to buy sovereign debt from central and eastern Europe with a three digit spread on Thursday.

Moscow’s Domodedovo Airport (DME) has named leads for dollar roadshows, potentially adding to the $2bn of supply from Russian issuers so far this year.

The Republic of Poland has set final terms for its €1bn 8.5 year green bond, with books over €3.4bn at the last market update. A banker away from the deal called the final level tight.

The long anticipated US Treasury Department report on oligarchs and parastatal entities of the Russian Federation was published on Monday night, but no indication of the Treasury’s recommendation on sanctioning Russian government debt was given.

Aviva Investors has brought in experienced analyst Carmen Altenkirch as a sovereign analyst on its emerging market debt team.

The Republic of Poland, which issued the world’s first sovereign green bond, has returned for another bite of the apple, naming leads for a new issue.

Credit Bank of Moscow, the only survivor of four banks identified in a leaked report from an Alfa-Capital analyst in August as at risk of a central bank bailout, has mandated lead managers for a senior trade.

Three new issues from Polyus Gold, Rusal and Alfa-Bank were trading below reoffer, with investors blaming the aggressive pricing strategies of Russian issuers, rather than concerns about the US Treasury recommendations due on Monday.

Kazakhstan is preparing to open up its local markets to foreign investors, having this week inked a memorandum of interest with Euroclear. After a big year for EM local currency issuance in 2017, investors and bankers are excited about the possibility of easier access to Kazakh local markets, writes Virginia Furness.

Russian corporates have been quick off the mark in the bond market this year with two more following fertilizer company PhosAgro into bonds this week.