CEE Bonds

Armenia’s Ardshinbank has broken ground in the international capital markets, becoming the first private sector entity from the country to issue a private placement bond.

Croatian food retailer Agrokor has mandated banks for a euro commercial paper (ECP) deal and is hoping to price it next week before the markets close for Christmas.

Russian steelmaker Evraz Group is offering to buy back its 2015 bonds at just over par. While the offer is reckoned to be on the tight side, analysts expected investors will jump at the opportunity as Russian risk continues to increase.

Russia’s Rosinterbank held a roadshow on the morning of December 5 in Hong Kong for its inaugural renminbi-denominated bond, which comes shortly after a series of one-on-one investor meetings in Hong Kong and Singapore earlier in the week. While potential buyers concede that the bank is growing fast, they are also worried about possible systemic risks associated with a poor performing Russian economy and US sanctions.

Russian Standard Bank is hoping to take a short cut to Basel III — using a consent solicitation to add write-down language to its old tier two debt. For investors worried about getting caught on the wrong side of the vote, RSB's proposal looks aggressive. But the function of bank capital is to protect the bank, not to simply reward investors without risk.

Hulusi Horozoğlu, previously head of global capital finance and debt finance at HSBC Turkey, has been promoted to assistant general manager, head of banking and capital financing. He is now responsible for all debt financing products as well as the bank’s investment banking operations which includes its M&A and equity capital markets business, global banking coverage, multinationals business and FIG.

Rosinterbank, a second tier Russian bank, has revived its plans for a debut renminbi-denominated bond, holding one-on-one investor meetings this week in Asia. The bank had appeared to be close to launching a bond back in August, but some bankers think it will not be much easier to get a deal away now, unless the borrower is prepared to price very generously.

Russian Standard Bank is hoping to take a short cut to Basel III — using a consent solicitation to add write-down language to its old tier two debt. For investors worried about getting caught on the wrong side of the vote, RSB's proposal looks aggressive. But the function of bank capital is to protect the bank, not to simply reward investors without risk.

Promsvyazbank has repurchased just under 20% of its old style tier two 10.2% 2019s at market price. Analysts said this was a positive sign that the bank has liquidity and is comfortably capitalised.

Metinvest has received bondholder consent to exchange its $500m 10.25% 2015s after a lengthy approval process – including one amendment to terms and a deadline extension – which began on October 21.

Akbank’s German subsidiary, Akbank AG, will begin roadshowing its inaugural bond with investor meetings next week. But with few EM banks issuing from developed market subsidiaries, the price discovery process will be more difficult.

Bulgaria is looking to raise a medium term bridge loan of as much as Lev3bn ($1.92bn) in international markets ahead of a government bond issue next year.