CEE Bonds

Turkey shot down a Russian warplane on Tuesday morning near its border with Syria. The response to the attack in the bond market has been muted.

Russian lender VTB is expanding its China offering to meet rising demand from Russian corporates and financial institutions for RMB trade and investment services. GlobalRMB spoke to Alexander Dmitriev, global head of financial institutions at VTB, to discuss the bank’s China strategy and the challenges it faces.

Romania-based New Europe Property Investments (Nepi) has returned to the international bond markets, releasing initial price thoughts for a 5.25 year euro senior unsecured deal, almost exactly a year after it last tried to tap the market and with a refreshed set of lead managers.

Albaraka Turk Katilim Bankasi (Albaraka Turk) opened the pricing for an innovative tier two sukuk deal on Monday morning with initial thoughts of 10.5% area.

Finansbank has picked banks for a senior dollar benchmark that would be the first in the format from a Turkish bank since April.

Russia bonds burst back to the top of the emerging market priority list without a sanction being lifted after Alfa Bank smashed through its own yield curve on Wednesday. Demand is rampant among supply-starved investors who will be gleeful about the thawing of the geopolitical frost between Russia and the west, writes Francesca Young.

A 12 month roller coaster ride for US rates expectations has ended with the 10 year Treasury yield back where it started, and in the meantime the CEEMEA bond market has been turned on its head for completely unrelated reasons.

Alfa Bank’s print of $500m 5% 2018s on Wednesday, which smashed 25bp through its own curve, demonstrated how big investor demand for Russian credit has become as the geopolitical frost begins to thaw.

Renaissance Securities is offering to buy back what remains outstanding of Renaissance Credit’s 7.75% 2016 bonds.

The order book for Russian Alfa Bank’s first senior unsecured bond in three years has reached $2.75bn, and guidance for the three year note has been crunched to 5.125% area.

Bankers are predicting a strong return of Russian bond issuance from non-sanctioned credits in 2016. But these issuers would be foolish to wait until next year when there is an issuance window open now.

Alfa Bank has mandated three banks for a senior dollar bond — only the second Russian financial institution bond this year — as the CEEMEA bond markets held stable after the terrorist attacks in Paris over the weekend.