CEE Bonds

PKN Orlen printed the first non-financial corporate bond from Poland since 2014 on Wednesday and managed to mop up plenty of demand from a brand new investor base.

Three Russian corporates are looking to hammer out deals in the wake of the sovereign’s return to the bond market last week. All are refining their debt profiles with a combined buyback and new offer.

Republic of Turkey is looking to take its next chunk of funding in the Islamic market, just days after President Erdogan called for Muslims to reject contraception to ensure the continued growth of the Turkish population.

“The Hungarian economy is performing very well and its vulnerability to external shocks has declined,” notes a recent IMF report. At the GlobalCapital Hungary roundtable, representatives from the public and private sector exchanged views on what recent indicators mean for the longer term performance of the economy, and on the country’s banking industry and capital market. Participants in the roundtable, which was hosted by the Ministry of National Economy in Budapest in early May, were:

The Government of Hungary has been committed to an economic policy that has been promoting the success of enterprises on domestic and foreign markets.

After a bumper week in dollars, euros will be back on the CEEMEA table this week with PKN Orlen and Croatia wrapping up meetings on Tuesday. But the European Central Bank meeting on Thursday and US data on Friday is expected to keep issuance limited this week.

Competition is becoming much fiercer in the Turkish banking sector. After years of rampant loan growth in many markets, banks will have to fight much harder to find new customers and bigger margins in the future.

Turkish banks are looking to mortgage-backed covered bonds to close asset and liability mismatches and reduce borrowing costs. In the next few years, the asset class will become a cornerstone of their funding plans. Tyler Davies reports.

Political uncertainty has provided a volatile backdrop for investors in Turkey over the last year, making the growth in its economy all the more impressive. But as Philip Moore reports, the country’s economic resilience will be severely tested this year.

Buttressed by vibrant domestic demand and supported by weak global commodity prices, Turkey’s economy continues to post solid growth. In this interview, treasury undersecretary Cavit Dagdas explains how Turkey’s medium term programme (MTP) will underpin continued growth.

Russia this week printed its first Eurobond since 2013. But the $1.75bn deal — hobbled by Western banks refusing to lead arrange, Euroclear declining to confirm it would settle the bond and compliance teams halting some fund managers from participating — was not a straightforward issue. Debate rages as to whether the exercise has done the sovereign more harm than good.

The Republic of Turkey has set roadshow dates for an outing in the sukuk market, edging closer to finishing off its $4.5bn external funding requirement for this year.