CEE Bonds

The Slovakian government has approved an updated version of its covered bond law but while this is likely to improve on the existing framework further work may be needed.

Fibabanka has shelved plans for an inaugural senior dollar bond despite signs of a recovery in Turkish bank paper.

Credit Europe Bank NV (CEB) announced on Thursday that it was mandating banks for a dollar deal, calling an outstanding bond, and spinning off its Russian subsidiary.

Russian steel company TMK has launched a consent solicitation for its $500m 6.75% 2020s with the purpose of removing IPSCO Tubulars, its US based subsidiary, as a guarantor on the notes. An investor in London said that he expects bondholders to agree to the changes.

Poland’s Bank Gospodarstwa Krajowego (BGK) printed a €750m long 10 year bond on Tuesday from a book of more than €1.1bn and with only a 3bp new issue premium.

Russian gold miner Petropavlovsk has mandated four banks for its debut in the international bond markets, a dollar benchmark.

ABH Financial, the holding company of Russian issuer Alfa Bank, returned to the Swiss franc market on Tuesday, with a refinancing of a Sfr85m ($85.6m) January 2018 that almost doubled the size of the original issue. The transaction came just days after Russian investment company 01 Properties pulled a debut deal after finding insufficient support for a four year bond.

Turkish Fibabanka is heading off on a roadshow on Wednesday to market a five year dollar denominated bond. But with Turkish bank levels still elevated after local press reports that some Turkish lenders could be fined billions of dollars by the US for violating sanctions on Iran, the bank and its leads are hoping for a rally before pricing.

Poland’s Bank Gospodarstwa Krajowego (BGK) released price guidance on a 10.5 year benchmark bond on Tuesday morning in London at a level that bankers away from the deal said looks fair.

Turkey’s banking regulator issued a statement over the weekend asking the public to ignore stories about the country’s banks, after local press reports that some Turkish lenders could be fined billions of dollars by the US for violating sanctions on Iran.

Bank Gospodarstwa Krajowego is marketing a long 10 year euro benchmark bond on Monday, getting in before what is expected to be a slew of emerging market bond sales this week.

PKO Bank Polski issued in Swiss francs for the first time in five years this week amid an improving basis swap out of the currency that is opening up a window for deals.