CEE Bonds

PBoC opened the week with a near-300bp weakening of the dollar fix, while Rusal received the green light for its upcoming Panda bond deal, and the Shanghai-London Stock Connect is now one step closer to becoming reality.

Turkey made an opportunistic move on Thursday to reopen its recent 10 year bond for another $1bn. The $4.7bn book size showed there is no let-up in demand for Turkish sovereign debt.

Steel company Severstal played true to Russian borrower form on Thursday, printing its new 4.5 year bond well inside its existing curve, according to bankers.

Russian Railways is still on track to be the country’s first borrower of 2017 to complete a deal in the syndicated loan market, with bankers expecting to wrap up documentation soon. But Siberian Coal Energy Company (SUEK) is leading a charge of big Russian pre-export finance facilities that look set to dwarf the unsecured market in the first half of the year.

Steel company Severstal, one of four Russian corporates rated above the sovereign, looked set to print below 4% on Thursday, tighter than guidance.

Turkey has made an opportunistic move to reopen its recent 10 year bond with a tap to raise an expected $1bn.

Agrokor, a Croatian retail, food and agriculture company, has enough funding to repay debt maturities this year despite a recently pulled loan syndication, according to Moody’s, but cash flow is low and addressing next year’s PIK notes will be critical to its rating.

Russian Railways will meet investors in London next week ahead of a potential return to both the dollar and Eurorouble bond markets.

The Russian bond market revival continued this week as Alfa-Bank issued a rare eurorouble note and Severstal announced plans for a global roadshow.

Equity-linked bond issuance, lagging behind demand in Europe, showed a burst of vigour on Thursday with the launch of three deals, including substantial convertibles for Vinci and Severstal that were both eagerly received.

Latvia became the first Baltic state to issue a 30 year bond as part of a €650m dual tranche transaction this week.

Severstal looks set to add to the growing surge of Russian supply with its plans, set out on Thursday, to meet investors ahead of a potential dollar bond.