CEE Bonds

Czech corporate Severomoravské vodovody a kanalizace Ostrava (SmVak) saved CEEMEA from a washout week on Friday, launching an international Reg S local currency deal.

Poland has mandated four banks for a bond in euros or dollars.

Emerging market debt houses in CEEMEA are suffering from a loss of business in Russia and the bottom line impact is even worse than the headline fall in issuance would suggest. Not only were the country's banks and corporates the highest fee payers in the region, but intensifying competition elsewhere as a result of the Russia crisis is also squeezing revenues.

Bank St Petersburg (BSP) was one of two Russian borrowers to complete a tender offer this week, and debt bankers expect the Russian asset liability management sector to stay busy in the coming months.

The Austrian subsidiary of Steinhoff International, the South African furniture retailer, has issued an inaugural Schuldschein for €650m, the second largest of the year.

Russian firm Industrial Metallurgical Holding (IMH) exchanged $150.8m of its June 2016 notes into a new 2018 deal this week, but not enough to allow it to bring fresh investors into the new note.

Peru’s Corporación Financiera de Desarrollo (Cofide) proved Latin America’s resilience amid widespread volatility with an $800m two part deal this week. In CEEMEA, Poland added its name to the pipeline of mandates hoping for a window.

A senior originator at Erste Bank in Vienna is leaving the firm.

Ripples from Greece’s weekend referendum reached the CEEMEA market on Monday. But a lack of recent bond issuance against crashing yearly volumes meant the immediate impact was minimal, and debt bankers are not ruling out deals this week.

Poland has mandated four banks for a bond in euros or dollars.

Turkey’s firms top the list of EMEA corporates most at risk from rising US interest rates and a stronger dollar, said Fitch. Although the countries with better hedged corporates are suffering from other problems, and not necessarily in a position to benefit.

Bank Saint Petersburg is offering to repurchase a total of up to $50m of its $100m 10.5% 2017s and $101m 11% 2018s.