CEE Bonds

Investors are soon to be treated to the lowest rated Russian bank debt since 2012 as Tatfondbank embarked on a roadshow for a three year deal to test just how strong demand is for the asset class.

The Polish national champion successfully issued its first euro denominated covered bond benchmark on Monday, and the first publicly syndicated deal ever issued by a Polish bank in the euro market.

Turkey shrugged of its second downgrade to junk on Friday to print a $1.5bn reopening of its 2026s. And if a sovereign bond was not proof enough that it is capital markets business as usual for the country, state-owned Turkiye Is Bankasi AS (Isbank) was out with a long five year on Monday morning.

Next week is likely to be one of the busiest in the fourth quarter in covered bonds, as a string of debut deals emerge, along with the first ever publicly syndicated euro benchmark from Poland.

Poland’s Bank Gospodarstwa Krajowego (BGK) is tapping the 10 year bond with which it made its debut earlier this year.

Russia plans to raise $7bn in the international markets next year as part of a three pillared approach to reduce its budget deficit, as sanctions and low oil prices continue to stunt its growth.

Eastern European telecoms operator RCS&RDS on Thursday printed a refinancing euro bond that was first planned in euros and Romanian leu, while it mulls a potential IPO.

Muted demand for Russian bank debt hit Promsvyazbank (PSB) as it struggled over the line on Wednesday with a deal, following compatriot Otkritie's trade last week. Worse still, access to longer term funding, which PSB says it needs, looks some way off.

Russia gave more details on Wednesday of its plans to privatise stakes in state assets, including Rosneft, VTB Bank and shipping company Sovcomflot.

Promsvyazbank (PSB) opened books on a three year senior deal on Wednesday, following hard on the heels of compatriot, Otkritie. But PSB wants more international investment than that seen in recent Russian deals, its CFO told GlobalCapital.

Polyus Gold, the largest gold producer in Russia, has picked three local banks and one international firm to arrange investor meetings for a dollar bond.

Russia plans to raise $7bn in the international markets next year and is working towards a radical overhaul of its capital markets to decrease pressure on the country’s strained banks, Sergei Storchak, deputy minister of finance, told GlobalCapital's sister publication Global Markets.