CEE Bonds

Russian corporates are once again at the forefront of issuance in emerging market bonds, raising $1.8bn already this week. With KoKs and Credit Bank of Moscow out with guidance on Wednesday, April is set to be a golden month for Russian issuers.

Yapi ve Kredi Bankasi looks set to take advantage of the bullish mood that has followed Turkey’s recent referendum and plans to issue its debut euro covered bond and what will be the second ever mortgage covered bond from Turkey.

EM bankers' predictions that April would be a mega month for Russian corporate borrowers look to be coming true with Metalloinvest raising $800m on Monday and Rusal and PhosAgro opening books on Tuesday.

Turkey’s Ziraat Bank was quick to take advantage of the recent rally in Turkish credit, opening books on a five year bond at 5.5% on Tuesday morning.

Turkish privately owned bank Fibabanka well test demand for riskier Turkish debt following the country's constitutional referendum on April 16, and has named two for its debut public transaction, a tier two Basel III deal of up to $300m.

Two Russian issuers have hit the screens this morning with deals in the belly of the curve. Mettaloinvest is out with guidance for a seven year note, while United Company Rusal (Rusal) is expected to bring a deal on Tuesday.

Turkey’s debt markets always seem resilient to political shocks. But rose tinted views of president Recep Erdogan’s referendum victory this week ignore a worrying truth that its vast growth potential lies more than ever in the hands of one man able to squander it.

Turkey’s Isbank cut through post-referendum uncertainties to raise up to $750m with a seven year senior note on Thursday.

Jefferies is building out its CEEMEA trading operations, and eventually plans to add primary markets, derivatives and local currency trading to a revitalised business.

Ukrainian poultry producer MHP is lining up the second corporate bond of the year from the country, following a deal from Kernel in January.

Credit Bank of Moscow is going further down the capital structure with its second subordinated trade of the year, and will meet investors for what will be only the second additional tier one trade from Russia.

Political power plays in Turkey and the UK have done little to derail EM bond markets this week, but the pipeline is thinner than before Easter, and limited to Russian borrowers.