CEE Bonds
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The Slovak Republic sold its €1bn 15 year bond on Thursday in what proved another lesson for bond syndicates in how inaccurate CEE sovereign secondary curves can be as a measure of where to price new bonds.
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The Slovak Republic has firmed price guidance for its 15 year bond to 38bp over mid-swaps, with the book size standing at more than €800m.
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The Slovak Republic has mandated three banks for a Reg S 15 year public benchmark. It added that it will wait until the second quarter of the year at the earliest to tap the private placement market.
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Hungary will not issue a dim sum bond until a period of sustained stability is seen in the Chinese markets, said bankers on Wednesday.
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Poland’s new euro denominated dual tranche bond slumped after pricing. But one bad bond should not put off other issuers. There are plenty of reasons why CEEMEA trades should work — if bankers do their part.
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Republic of Poland’s €1.75bn dual tranche market reopener underperformed on the break on Tuesday. Bankers away from the mandate said the deal was too tight with the leads wrong footed by illiquid secondary levels, but the Poland ministry of finance called the note a success.
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Following in Poland’s path, around half of the CEE sovereigns have plans to issue bonds in the first quarter of this year, according to Erste Bank.
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Republic of Poland offered a healthy concession in the early pricing stages as it ventured into the markets with the first bond from CEEMEA in 2016 on Monday.
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The Russian Ministry of Finance is living in a fantasy land if it thinks the IMF will have to reconsider its support of Ukraine under the Extended Fund Facility Agreement, according to analysts.
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Hungary will meet investors in Hong Kong and Singapore as it prepares to issue the first ever sovereign dim sum bond from the CEEMEA region.