CEE Bonds

A Russia-shaped void opened up in the central and eastern European loan market in 2014 — one that is still gaping, writes Dan Alderson. This and the wider region’s economic challenges are prompting Western banks to shift their weight to other areas such as Africa, Turkey and Kazakhstan.

The Republic of Turkey re-opened the CEEMEA bond market in 2015 on Wednesday with a $1.5bn tap of its 2043s. Turbulence across EM and falling oil prices played to Turkey’s favour with the bond offering a haven to nervous investors. But as a result of the recent volatility, the country paid a decent new issue premium, bringing in a $5bn book.

Vakifbank will apply to Turkish authorities to establish a participation bank with $300m equivalent of paid up capital and a registered capital ceiling of TL1bn ($432m), the bank announced this week.Meanwhile, rival Turkish Islamic financial Bank Asya, while responding to an official investigation of its Bursa branch, completed a capital raise and announced the sale of a stake in Tamweel Africa Holding.

A wave of Russian corporate debt rescheduling, defaults and renationalisations is inevitable this year, a senior banker and emerging market analyst have warned. However, the claims angered officials at Western lenders heavily exposed to Russian loans and bonds, writes Dan Alderson.

The Republic of Turkey re-opened the CEEMEA bond market in 2015 on Wednesday with a $1.5bn tap of its 2043s. Turbulence across EM and falling oil prices played to Turkey’s favour with the bond offering a haven to nervous investors. But as a result of the recent volatility, the country paid a decent new issue premium, bringing in a $5bn book.

The Republic of Turkey re-opened the CEEMEA bond market in 2015 on Wednesday with a $1.5bn tap of its 2043s. Turbulence across EM and falling oil prices played to Turkey’s favour with the bond offering a haven to nervous investors. But as a result of the recent volatility, the country paid a decent new issue premium, bringing in a $5bn book.

Analysts are concerned that New World Resources, the Czech coking coal producer, could need a new debt restructuring, after it struck deals to sell coal that could leave it still leaking cash.

The deadline to submit bond market strategy recommendations for Romania is Thursday.

The Republic of Turkey, one of the emerging market countries expected to benefit from falling oil prices, is reopening its 2043 bonds today.

The Turkish Treasury has promoted Cagatay Imirgi to deputy director-general. Zeynep Boga will replace Imirgi as head of the international capital markets department.

Promsvyazbank has made another opportunistic move to manage its debt liabilities, on Monday announcing a buyback of 10% of its 2015s and 2016s. The move shows the bank has liquidity to deploy and follows an earlier buyback in December.

Russian Standard Bank has withdrawn its proposed tier two bond update after failing to secure the consent of holders of nearly half of the bond before the December 16 deadline. The offer looked to be struggling as early as mid-December when the bank increased the late consent fee from 1% to 5% to switch to the new notes.