CEE Bonds

Ukrainian corporate restructuring has resumed with Ferrexpo, a Ukrainian iron ore pellet exporter, which is looking to exchange its $500m notes due 2016. Analysts expect this to be the first of several such offers this year as political and economic uncertainty in the region continues.

The Republic of Serbia plans to issue its debut euro-denominated international bond this year, Branko Drcelic, head of the Serbian Debt Management Agency said at a conference on Tuesday.

Ukraine on Wednesday said that the Ministry of Finance will “consult with the holders of Ukrainian international sovereign debt so as to improve Ukraine’s medium term sustainability”, which analysts have taken to mean that a proposed restructuring or reprofiling of the bonds is on its way. The country’s bonds only sold-off around three points though as investors had already priced in the likelihood of this move.

Russian Standard Bank is making a second attempt to secure investor support for its capital update after failing to generate enough interest first time round. RSB re-launched the consent solicitation for its 10.75% 2018s on January 19.

The Republic of Serbia plans to issue its debut euro-denominated international bond this year, head of the Serbian Debt Management Agency said at a conference on Tuesday.

The Polish sovereign will prioritise dollar bond issuance when it finally taps the market this year, Ministry of Finance officials told GlobalCapital Emerging Markets.

Turkey’s central bank has had to fight hard to win respect as an institution independent of political pressure. With the country on firmer economic footing the central bank took its chance to cut rates — which will have delighted Turkey’s president. But the bank’s still shaky credibility and Turkey’s vulnerability to capital market vagary means there is more at stake.

Philipp Heim and Christoph Ilgner have left debt capital markets positions at Erste Bank and moved to other firms.

Azeri bankers are hoping that the country will have new Islamic finance legislation in place as early as the first quarter of this year. The new law would pave the way for International Bank of Azerbaijan (IBA) to launch a planned sukuk, which is likely to be backed by the bank's ijara portfolio, an IBA official told IFIS.

Ukrainian corporate restructuring has resumed with Ferrexpo, a Ukrainian iron ore pellet exporter, which is looking to exchange its $500m notes due 2016. Analysts expect this to be the first of several such offers this year as political and economic uncertainty in the region continues.

A €5.5bn order book helped the Slovak Republic price its new 12 year euro bond in a record 2.5 hours on Tuesday morning. Strong credit fundamentals, which led to a rally across Slovakia’s curve, have enabled the borrower to price at its lowest ever yield for a long dated euro bond.

Encouraged by the strong response to Turkey’s $1.5bn tap last week, a trio of the country's banks picked up the bond market baton this week — Akbank priced a $500m five year Eurobond while Turkiye Vakiflar Bankasi (Vakifbank) and Sekerbank announced investor meetings.