CEE Bonds

Last Friday, Turkey managed to cling on to its investment grade status after Moody’s left its credit rating on hold. But with selling pushing the sovereign wider than several countries with lower ratings, bankers and investors are questioning where the money has been moved to.

CEEMEA primary markets have finally become a victim of the summer heat but there’s no snoozing on the beach for syndicate bankers. Planning for the second half of the year has already started in earnest.

A third Turkish bank has returned to the MTN market, joining Vakifbank and Yapi Kredi with a short dated private placement as prices approach the levels they held before the failed military coup on July 15.

Standard & Poor’s upgraded Novolipetsk Steel (NLMK) and Severstal to one notch above the Russian sovereign rating at the end of last week, prompting a rally in their bonds as investment grade funds became able to buy the notes.

Turkey on Friday managed to cling on to its investment grade status after Moody’s left its credit rating on hold.

A pair of Turkish banks has returned to the MTN market after a 100bp rally in their secondary levels, marking the first bonds since the failed military coup in Turkey on July 15 and bringing hope that by September, public syndicated bonds may be back on the table.

Mizuho International has hired a banker from Standard Chartered to help build its nascent FIG business in Europe.

Georgian holding company BGEO Group bought back some $300m of its outstanding bonds on Wednesday. The buy-back came as part of a combined tender and new issue, which was anchored by the International Finance Corporation.

HSBC has let go of a DCM banker who had spent over a decade with the bank, according to market sources.

Euroclear started servicing the Russian sovereign’s $1.75bn 2026 bond on Thursday, prompting a 30bp yield rally in the bonds and opening further discussion as to when the sovereign may return for more funding in the international markets.

Rating: Ba1/—/BB-

Far Eastern Shipping Company (Fesco) is looking to impose a near 40% haircut on holders of its local and international bonds.