CEE Bonds

CEEMEA borrowers pounced on a clear window this week and paid for it with premiums as high as 50bp. But while everyone talks about the size of the concessions, it’s worth noting that issuers showed the maturity to accept them.

Ukrainian lender Privatbank failed in its first attempt to reprofile its 2016 bonds, which surprised some analysts. But not those inured to the numerous iterations of most Ukrainian restructuring exercises.

Kazakhstan printed a gigantic $4bn dual tranche bond this week, drawing a book of around $9.5bn for the notes.

CEEMEA borrowers pounced on a clear window this week and paid for it with premiums as high as 50bp. But while everyone talks about the size of the concessions, it's worth noting that issuers showed the maturity to accept them.

Kazakhstan opened books on a dual tranche dollar bond on Tuesday morning, and is looking for at least $2bn, according to a source close to the deal. Debt bankers away from the bond felt confident size would not be an issue, but were divided over whether the start point was appropriate or very cheap.

Rustavi Azot, the only manufacturer of nitrogen fertilisers in the South Caucasus region, has mandated Citi and Galt & Taggart to arrange a $180m five year non-call three bond. The bond will be the first from a privately owned company in the Caucasus region.

CEEMEA debt bankers spent Monday morning on the phone to issuers following news of a Greek bailout agreement. But prospects for supply still hinge on a Greek parliamentary vote on Wednesday, and even then not just any CEEMEA issuer will be able to launch, said debt bankers.

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.