CEE Bonds

Strong demand from domestic investors helped Polyus Gold price a new dollar deal inside its existing curve on Wednesday, as reports circulated of imminent supply from a pair of Russian corporate giants.

Polish banks will be anxious to follow PKO Bank Hipoteczny which on Monday enjoyed a superb reception for its euro benchmark covered bond — the first from the country. Bill Thornhill reports.

Strong demand from domestic Russian investors helped Polyus Gold price a new dollar deal inside its existing curve on Wednesday.

Turkiye Vakiflar Bankasi (Vakifbank) added to the recent flood of Turkish supply on Thursday, emerging with initial price thoughts for a new five year dollar bond.

Alfa-Bank is marketing the first ever fully Basel III compliant additional tier one (AT1) trade from Russia and will begin investor meetings on Monday.

Turk Eximbank became the third Turkish borrower to tap the dollar market in less than a week on Tuesday, raising $500m of seven year funding.

Polyus Gold emerged with pricing for a long five year dollar bond on Wednesday morning as reports circulated of imminent supply from a pair of big Russian corporates.

The CEEMEA bond market exploded into life this week in what will be one of the busiest of the year. Saudi Arabia is leading the action with its much-anticipated bond but Turkey made an impressive comeback with four of its banks in the market following Friday’s sovereign trade. Further supply from Poland, Russia, the Middle East and Africa is adding plenty of diversity for investors.

Poland cemented its position as one of EM’s most nimble and savvy issuers on Tuesday by printing a 30 year euro deal — only the second ever from a non-Eurozone sovereign — in an opportunistic trade.

Plans abound to connect China’s bond market with offshore counterparts but they have had little success until recently. Now Russia’s National Settlement Depository (NSD) is close to launching a link in the first half of 2017, Eddie Astanin, chairman of the executive board, told GlobalRMB.

Primary bond markets were awash with Turkish bank deals on Tuesday as Turk Eximbank, Sekerbank and Kuveyt Turk added to Isbank’s Monday mandate. With books slow to build and Turkey recently losing its investment grade status, lead managers believe new issue premiums will need to offer a reason to invest.

Republic of Poland raised €500m with its longest ever syndicated bond as part of its push to extend the average duration of the country’s debt by taking advantage of low rates, as Slovenia made plans to reduce debt costs by buying back three of its dollar bonds.