CEE Bonds

Ukraine’s Privatbank has received approval from the High Court of England and Wales for a restructuring deal approved by holders of its subordinated Eurobonds.

Allied Irish Banks (AIB) could be ready to give investors a rare taste of periphery bank capital soon, but evidence of investor appetite for higher beta paper was mixed this week.

The Romanian mortgage market is set for growth after local authorities amended its previously unusable covered bond law to bring it into line with the best standards in western Europe.

Banco Popular Español became the first peripheral bank to launch senior debt in just under two months on Thursday, paying around 20bp of new issue concession to tap its outstanding February 2020 bonds.

Albaraka Turk Katılım Bankası (Albaraka Türk), has mandated seven banks to arrange a Basel III compliant Reg S tier two subordinated sukuk — only the second from Turkey and the first in sukuk format.

Istituto Centrale delle Banche Popolari Italiane (ICBPI) sold its €1.1bn PIK note on November 6 in what looked like a comeback week for the high yield bond market — but it turned out to be a short-lived pick-up.

Albania returned to the international market for its second ever bond deal this week, raising a sum larger than it needed in a result that drew approval from rival bankers

Turkish sovereign and bank bonds initially rallied 20bp-30bp on Monday on the Justice and Development (AKP) party’s election victory in Turkey, but investors should remember that this is short term relief, not a long term fix.

A spate of mandates hit CEEMEA this week, with Macedonia and Cameroon joining two Middle East banks in announcing new deals.

Turkish sovereign and bank bonds crunched tighter this week as the ruling Justice and Development Party (AKP) regained its parliamentary majority, but the rally lost its steam on Thursday as the market looked further forward to at least another four years under President Recep Tayyip Erdogan.

The Republic of Albania has released initial price thoughts on a euro denominated five year Eurobond.

The Republic of Macedonia has mandated Citi, Deutsche Bank and Erste Group to arrange a euro denominated bond.