CEE Bonds

Poland’s mBank saw strong demand for a new euro-denominated four year senior unsecured benchmark after initial price thoughts were released early Wednesday.

Russian Railways is to issue a Eurobond in roubles — the first time in over a year that an offshore rouble bond has been issued by a corporate borrower. The proceeds of the deal will be used to buy back outstanding dollar and Swiss franc bonds.

Debut issuer O1 Properties opened books on its five year dollar note on Tuesday with a yield of 8.5% area.

Otkritie has postponed its planned bond after failing to reach a pricing agreement with investors. The price sensitive issuer is continuing to monitor the market, bankers said on Tuesday.

A surprise upgrade from S&P saw Hungary’s external debt rally 30bp over the weekend and, with the country set to enter crossover indices as an investment grade credit, further flows from passive investors are expected.

Russian commercial real estate investment company O1 Properties is targeting a five year bond following the completion of an investor roadshow on Friday, a banker at one of its leads said on Monday.

Global Ports reopened the market for Russian issuers on Thursday with a seven year dollar deal that drew both plaudits and criticism from rival bankers.

Telenor sold $1.5bn of shares in VimpelCom, the Russian telecoms company, this week, in a combined equity placing and exchangeable bond that were well received, despite the Uzbek bribery scandal that engulfed both companies last year.

The IMF’s approval of a long-awaited disbursement of funds to Ukraine could help set the stage for an unguaranteed sovereign bond issue, local bankers said on Thursday.

Global Ports became the first issuer to test demand for Russian assets for more than two months on Thursday with the release of pricing for a new seven year dollar deal.

Poland’s mBank will hit the road next week for its first euro senior deal since November 2014. The bank did plan a roadshow for a euro bond in 2015 but decided not to go ahead with the meetings as the issuer did not like the levels available, according to an EM banker.

A strong pipeline is building in CEEMEA but after last week’s mini-tantrum, EM bankers are dealing with a shift in investor attitudes which will likely impact pricing as investors demand juicier levels from upcoming issuers.