CEE Bonds

DCM bankers will be hoping that central and eastern European issuers gathered in Vienna this week will have taken Slovenia’s Eurobond success as a sign that for CEE borrowers, the funding market is well and truly open once more.

Slovenia is on track to become the first central and eastern European sovereign to tap the bond markets this year after announcing price for a dual tranche euro deal on Tuesday morning.

The Republic of Poland is looking to become the first repeat sovereign issuer of Panda bonds as it seeks to raise Rmb3bn ($435m) this year.

Türkiye Vakıflar Bankası (Vakibank) is asking investors exchange its old style tier two bonds for new Basel III compliant notes, making it the second Turkish bank in as many weeks to turn to liability management to boost its capital.

Loan bankers’ enthusiasm to undertake more Russian business this year looks set to translate into deals soon, with Russian Railways in talks about a new money club loan.

After spending 2016 away from the high yield market, UK premium car maker Jaguar Land Rover returned on Tuesday to add euros to its all sterling and dollar debt.

Reducing Hungary’s FX liabilities continues to be one of its debt management office’s (AKK) driving factors, but CEO György Barcza also remains committed to diversifying the country’s funding sources. With a Japanese yen bond maturing, and a €1bn bond planned, 2017 looks set to offer investors some rare opportunities to buy into Hungary’s improving debt story.

Turkish borrowers face a tough year as security concerns about the country threaten access to a funding market that is already expected to suffer volatility. But bankers say it is business as usual in Turkey, and investors agree that Turkish spreads are still an attractive prospect.

Emerging market bankers are optimistic for a busy first quarter after markets opened on Tuesday in a much stronger position than they had a year ago. Sovereign issuers from the Middle East and CEE are expected to lead the charge.

In late 2016 a clutch of Russian borrowers shrugged off Western sanctions and domestic stagnation to return to the global bond markets. But will investors’ returning appetite for Russian risk survive a global repricing? Lucy Fitzgeorge-Parker reports

China and Russia are forging ahead with closer financial market ties, with the Moscow Exchange (Moex) and Shanghai Stock Exchange (SSE) looking to facilitate two-way investments between the countries. This comes as the Russian ministry of finance is still finalising plans for the first RMB-denominated bond to be issued in Russia.

Alfa-Bank defied low pre-Christmas liquidity levels to print a $300m increase of its AT1 that was sold to a greater proportion of international investors than the original October print, according to a lead banker.