CEE Bonds

Russia's Ministry of Finance has initiated legal action against Ukraine over the latter’s failure to repay a $3bn December 2015 Eurobond. It also claims that the default breaches the terms of the International Monetary Fund’s Extended Fund Facility.

Black Sea Trade and Development Bank (BSTDB) on Monday sold the second note from its EMTN programme, after drawing demand from asset managers.

Ukraine announced a moratorium on the $3bn bond held by Russia’s National Welfare Fund on Friday. The moratorium also covers Ukraine’s sovereign-guaranteed loans for Ukravtodor and Yuzhnoye.

Russian steel company Evraz raised $750m from a bond that was printed tight to secondary levels on Thursday as it benefited from huge pent up demand for Russian corporate paper, even in a volatile market for metals and mining firms.

With SSA investors increasingly muscling in on CEE bonds, a small number of banks have transferred execution for these sovereigns to their SSA syndicates. But a GlobalCapital poll showed that most banks have not yet done so and may not for some time, despite their spreads, already converging with the SSA market, having been shoved closer still by European quantitative easing.

Russian steel company Evraz has set the yield on a long five year benchmark at 8.25% area, a level that bankers away from the deal said was roughly in line with where he calculated fair value for the bond.

Bondholders have approved the restructuring proposal for the City of Kiev 2016s and extended the deadline for approval of restructuring of its 2015 Eurobonds.

Latvia on Tuesday sold €550m 0.5% December 2020s from a book of €1.6bn, in conjunction with a buyback of its old dollar debt, switching out some of its traditional EM investor base for new rates buyers.

The Central American Bank for Economic Integration (Cabei) sold its second Swiss franc deal for the year on Monday, drawing demand from Swiss asset managers.

Kazmunaigas (KMG) is repurchasing $3.4bn of bonds across its outstanding 2043s, 2044s, 2023s, 2025s, 2020s and 2021s.

The European Bank for Reconstruction and Development has printed a medium term note linked to Kyrgyz government debt.

Russian steel company Evraz is roadshowing a Reg S senior unsecured dollar bond through six active bookrunners and two passive, in tandem with a tender offer.