CEE Bonds

Turkish legislation has been in place for years and six borrowers have set up covered bond programmes, but so far supply has proved fleeting. Nevertheless, delegates at the CEE Covered Bond Forum in London heard this week that the challenges that held the market back are likely to disappear soon.

Holders of International Bank of Azerbaijan’s eurobonds reacted with fury this week to restructuring proposals that offered a 20% haircut for conversion into sovereign risk.

Holders of International Bank of Azerbaijan’s Eurobonds reacted with fury this week to restructuring proposals that offered a 20% haircut for conversion into sovereign risk.

Not only is the CEEMEA bond market red hot and smashing through issuance records, there were also signs this week of its developing maturity, writes Virginia Furness.

Amended Slovakian covered bond legislation, set to come into effect in January 2018, will lay the foundation for a robust internationally focused market leading to greater volume, delegates at the CEE Covered Bond Forum in London heard this week.

Emerging Market Bond House of the Year

Vakifbank took advantage of seemingly insatiable demand for Turkish bank paper to raise $500m of five year senior funding on Tuesday.

International Bank of Azerbaijan has asked investors to agree to a restructuring of its balance sheet that will see the exchange of its outstanding bonds for new sovereign debt, and a limited amount of new IBA debt. IBA has also said that it must transfer a fourth tranche of bad assets to the Bank of Aqrarkredit to restore its viability.

Vakifbank has opened books on a drive-by five year senior trade as Turkish financial supply trickles into the primary market.

International Bank of Azerbaijan’s Eurobonds took a hammering this week as investors’ hopes of escaping a debt restructuring without a haircut dimmed.

Rating: Baa3/A/A-

State-owned Russian transport leasing firm State Transport Leasing Company (STLC) will meet investors for its second dollar bond from Friday.