CEE Bonds

Promsvyazbank, Russia’s ninth largest bank by assets, has become the third major Russian private bank this year to be bailed out by the Bank of Russia.

A planned Eurobond from Tengri Bank, Kazakhstan’s 24th largest lender, failed to appear in the public market on Friday, when it had been expected to be priced.

Kazakhstan’s 24th largest lender Tengri Bank was asking investors this week to extend financing amounting to over 50% of its total assets. The bemused buy-side is not exactly piling in.

Emerging market bankers said a pipeline of local currency Eurobonds is building for 2018 — including another in tenge — with Development Bank of Kazakhstan’s (DBK) recent tenge trade setting a good tone in the market last week.

Development Bank of Kazakhstan on Thursday priced the first ever tenge Eurobond, raising the equivalent of $300m from a three year note.

International investors were eyeing the first Kazakh tenge trade to be cleared by Euroclear on Thursday.

A variety of corporate deals are keeping EM investors busy in what is expected to be the last week for new issues before the end of the year.

SMBC Nikko has hired a new head of emerging markets credit trading as it looks to build out its fixed income offering.

Russia’s Otkritie Bank last week announced plans to write down its outstanding tier two bonds, including an old-style $500m 10% April 2019 tier two, the contractual terms of which did not include a write-down feature. The move was an invitation to sue the private lender, said one EM portfolio manager, and GlobalCapital can reveal that Baker & McKenzie is building a case to bring against the bank.

The Republic of Bulgaria has investment grade ratings from all three big rating agencies, after Standard & Poor's last Friday revised the country's credit rating to BBB- from BB+.

The Philippines postpones its Panda bond deal as it awaits approval from China’s central bank, Hong Kong Exchanges and Clearing (HKEX) opens its first office in Singapore, and the renminbi falls to seventh place in the league table of the world’s most used payments currency in October.

Bulgarian insurer Eurohold sold a €70m five year bond on Thursday, rolling many investors from an old bond into this new one.