CEE Bonds

Making Kazakh domestic assets Euroclearable is a laudable aim. But in its treatment of international investors, the country needs to be aspire to similarly high standards if it is to succeed in opening up capital markets.

United Company Rusal has released price guidance for its Reg S/144A five year benchmark bond.

Russia’s Alfa-Bank achieved a sub 7% print to raise $500m with the first additional tier one from the country this year.

Polyus Gold, Russia’s largest gold producer, printed its $500m six year bond on Wednesday from a book of $2bn and flat to where lead managers said they saw fair value.

United Company Rusal has added an extra bank to its bond mandate ahead of pricing for the Reg S/144A dollar deal, which is expected on Thursday.

Kazakhstan is a step closer improving foreign investor access to its domestic market and has signed a memorandum of interest with Euroclear, which will allow the settlement provider to clear bonds denominated in tenge.

Polyus Gold, Russia’s largest gold producer, has released price guidance for a six year benchmark bond and books for the deal are already over $1.1bn.

Turkey’s Vakifbank was able to increase the size of its deal on Tuesday to $650m after strong demand propelled the book to over $1.7bn, as funding costs return to levels seen before the fourth quarter of 2017.

Emerging markets are coming to the fore in equity capital markets this year, fulfilling predictions of a good year for ECM issuance from more challenging markets.

New emerging markets bond issues are starting to trickle after a slow start to the week. Political events in the US, as well as Turkey’s military campaign in Syria have proved an unhelpful distraction, though overall the markets remain in good shape.

Vakifbank opened books on Tuesday on the third senior 2023 from a Turkish financial institution this year and was expected to guide investors towards a sub-6% print.

Petkim Petrokimya Holding brought the first high yield corporate trade from Turkey since 2014 last Friday, raising $500m with a sub-6% coupon.