CEE Bonds

Nostrum Oil & Gas hit the screens on Monday with a five year non-call two dollar note having completed its roadshow last week. But though the 8% handle on price guidance hascaught the attention of rival bankers.

‘Business as usual’ was the tone this week in emerging markets, after last week’s losses were reversed and mandates began trickling through from across CEEMEA.

Gazprom printed a further Swiss franc bonds on Thursday. The deal was less reliant on Russian lenders to reach the Sfr500m ($517.9m) capped size than its previous two Swiss bonds, as Gazprom has developed a strong reputation among Swiss, and wider European, retail lenders.

The Polish subsidiary of Commerzbank, mBank, has published the base prospectus for its €3bn covered bond programme, suggesting it could be ready to start a marketing drive leading to its first euro-denominated publicly syndicated deal.

KazmunayGas has failed to persuade its investors to remove covenants from its debt, with buyside analysts blaming the small fee offered and the lack of a coherent strategy.

GetBack, the Polish debt collection company, plans to follow up its Warsaw IPO with a euro denominated senior bond.

With a dearth of emerging market bond supply defining the start of the week, it was left to high yield issuers to provide something for EM investors to get their teeth into as United Group, a cable operator in Eastern Europe, became one of five HY mandate announcements announcements on Monday.

China’s FX reserves gained $3bn in June, the UK’s renminbi deposits grew in the first quarter of 2017, and China and Russia agreed to establish a joint investment fund for Belt and Road infrastructure projects.

KazAgro has seen a two notch cut in its rating from Standard & Poor’s, as the rating agency says that there is a declining state wilingness in Kazakhstan to provide funds for government related entities.

Gazprom will return to Switzerland next week for roadshows in Geneva and Zurich. And, as retail taste for sub-investment grade credit grows, the bookrunners are confident the Russian gas firm will attract demand.

Investors responded to the news that the International Monetary Fund will likely delay a $1.9bn tranche of its bailout for Ukraine by saying the country has no chance of issuing a bond until the payment clears.

Activity in the CEEMEA primary market is likely to be loaded towards the back end of this week, according to bankers, as roadshows end and issuers dodge around macroeconomic events and holidays in the US.