CEE Bonds

A chequered history of debt restructurings and shareholder rebellions meant that a bond for B- rated Petropavlovsk was always going to be a tough sell. But a chunky 8.125% yield helped the gold mining company scrape together $500m to pay back more expensive bank loans, according to lead managers, despite the year end fast approaching.

The Republic of Croatia is embarking on a roadshow to market its longest euro denominated Reg S bond.

A chequered history of debt restructurings and shareholder rebellions meant that B- rated Petropavlovsk was always going to be a tough sell. But a chunky 8.125% yield helped the issuer scrape together $500m to pay back more expensive bank loans, according to lead managers, despite the year end fast approaching.

Despite returning to profit in 2016, Petropavlovsk looked to be finding it difficult to shake off past concerns about its ability to refinance debt, as well as a shareholder rebellion in June that led to the ousting of founder Peter Hambro. The issuer opened books on a five year note at low 8% on Tuesday.

Russian goldminer and debut bond issuer Petropavlovsk is expected to bring a new five year note with a yield in the region of high 5% on Tuesday. Bankers will be watching with interest to see how the equal lowest rated non-financial Russian debut corporate issuer fares.

Books for Credit Europe Bank’s $150m tier two bond were at $375m on Thursday afternoon as the bank set the launch price for the deal at 7.25% yield.

Books for Credit Europe Bank’s $150m tier two bond are at $375m as the bank sets the launch price for the deal at 7.25% yield.

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.