CEE Bonds

Russian Standard Bank (RSB) is taking an innovative approach to buffering its capital ratios. Its is asking bondholders to approve a restructuring of its old style 10.75% subordinated 2018s which would make them Basel III compliant. Analysts are unsure whether investors will accept the offer.

Dmitry Gladkov, previously head of Russia and Ukraine DCM at JP Morgan, has joined Renaissance Capital as head of DCM, based in the bank’s London office.

Agroton Public is seeking bondholder approval to postpone interest payments on its $50m notes due 2019 in what analysts are calling a de facto default. The Ukrainian company’s operations have been severely impacted by fighting in the Luhansk region.

New Europe Property Investments (Nepi) is ploughing ahead with efforts to engage investors on a non-deal roadshow despite having postponed its euro-denominated bond offering after meetings held at the end of October.

Credit Bank of Moscow has printed its Rb5bn 10.5 year non-call 5.5 year subordinated bond at par with a coupon of 16.5%, the highest ever for a Russian bond, according to Dealogic data. The deal was sold to a small group of investors that drove the transaction and pricing.

Vnesheconombank printed a Rb9bn one year domestic bond on Thursday with Raiffeisen Russia, a subsidiary of Austria's Raiffeisenbank International, on the mandate alongside Russian banks Gazprombank and Sberbank.

Korea Expressway Corp made up for its recent disappointment in dollars with a tightly priced Swiss franc debut on Tuesday.

The Republic of Turkey raised $1bn with a 10 year sukuk on Tuesday, closing the gap between its conventional and Islamic funding costs to just a handful of basis points. Despite some disagreement over just how close the issuer got to conventional levels, the tight pricing provides ammunition for debt bankers trying to tempt other sovereigns into the Islamic market.

mBank was back in the euro market on Thursday with a €500m seven year note. The Polish bank is looking to become a regular issuer and took the opportunity to extend its curve, printing with a 10bp-15bp new issue premium.

Hapag-Lloyd, the German container shipping company, jumped into the high yield bond market on Thursday for a drive-by sale of a €250m bond, to refinance a deal maturing next year.

Credit Bank of Moscow has released price guidance at a yield of 16%-17% for a 10.5 year non-call 5.5 year subordinated rouble-denominated Eurobond. The final coupon on the note could be the second highest ever offered in the CEEMEA region for an internationally sold fixed rate note and the highest ever from a Russian issuer, but is largely being sold to a small group of investors that have already been identified.

Metinvest has extended the deadline to accept the proposed bond exchange offer for its $500m 10.25% 2015s to 24 November. Bondholders of 76% of the notes have already accepted the offer.