CEE Bonds

Latvenergo, a state-owned Latvian electricity company, opened books on a sub-benchmark sized green bond on Wednesday morning — its first ever international bond deal and Latvia's first green bond.

Troubled Ukrainian steelmaker Metinvest failed to draw a quorum at a bondholder meeting on June 1 — part of a prolonged attempt to reprofile its debt.

MFB Hungarian Development Bank (MFB) has mandated for its first euro deal in four years, and kicks off investor meetings next week.

The Middle East is still churning out deals and replenishing its pipeline, but a Gabonese Republic mandate offers hope of some diversification in CEEMEA. Petrobras and Buenos Aires, meanwhile, are among the names lighting up the Latin American bond markets.

Recent volatility in US and European bond markets has damaged capital flows into emerging markets. Although some analysts are expecting things to improve, the Institute of International Finance (IIF) expects capital flows into EM to hit their lowest level since the 2008 this year.

A barrage of consent solicitations from troubled Ukrainian firms continued this week, with Ferrexpo announcing a second exchange offer on its 2016 dollar bonds and State Export-Import Bank a preliminary restructuring agreement with its own bondholders.

The Republic of Ukraine issued a $1bn five year USAID-backed deal on Tuesday that was met with delight by holders of the country’s existing debt. The deal and ongoing support from the US is invaluable to the country, they said.

Traders have asked the International Swaps and Derivatives Association’s determinations committee to decide whether a credit event has occurred with respect to Grohe Group, the German maker of bathroom fittings.

The Republic of Ukraine priced a $1bn five year US AID backed deal on Tuesday — it’s second such transaction — and Ukrainian analysts expect another $1bn deal before the end the year.

Ukraine’s State Export-Import Bank (Ukreximbank) has reached a preliminary agreement with investors on restructuring its Eurobonds, using terms that provide a benchmark for State Savings Bank of Ukraine’s own efforts at altering its debt, said analysts.

Türkiye Cumhuriyeti Ziraat Bankasi (Ziraat Bank) was back in the private MTN market for euros this week, just a few days after its first issue in the currency.

The Republic of Albania has mandated Deutsche Bank and JP Morgan for a euro denominated bond intended to refinance the country’s outstanding €300m 2015s.