CEE Bonds

The Republic of Bulgaria has said it is mandating Citigroup, HSBC, Société Générale and UniCredit as arrangers and dealers on its €8bn global medium term note programme, according to a release on the country’s Ministry of Finance website. The programme was signed on February 6.

Russian Standard Bank finally secured investor consent to update its $350m 10.75% 2018 tier two capital notes this week, after a lengthy process that began in November. While the innovative deal could be used by other Russian banks to bolster their capital ratios, bankers say that few actually have the need to issue tier two debt.

A rally in Russian debt has given an immediate peace payout from the ceasefire in Ukraine, which starts on Sunday. But Ukrainian bonds have failed to pick up despite the IMF agreeing to increase its lending to the war-torn country with $5.8bn of new money, write Virginia Furness and Dan Alderson.

Russian Eurobonds have rallied after the leaders of Russia, Ukraine, France and Germany announced that a ceasefire would begin on February 15. This comes as the IMF agreed to increase its loan to Ukraine with $5.8bn of new money.

Renaissance Credit (RCCF) has offered bondholders of its $350m 7.75% 2016s the chance to sell their bonds back to the company for $730 for every $1,000 of bonds outstanding. RCCF wants to repurchase up to $100m of the bonds, according to two research reports. Around $264m are outstanding.

Russian Standard Bank has finally secured investor approval to update its 10.75% 2018 tier two capital notes, after a lengthy process that began in November.

The Republic of Bulgaria has said it is mandating Citigroup, HSBC, Société Générale and UniCredit as “arrangers and dealers” on its €8bn global medium term note programme, according to a release on the country’s Ministry of Finance website. The programme was signed on February 6.

Despite the strong success of several emerging market issuers — Halkbank, National Bank of Abu Dhabi, and Eustream — with bonds last week, other borrowers have refrained from issuing so far this week, leaving the focus on liability management, mandates and roadshows.

Severstal has bought back $221.4m of its 2016 and 2017 bonds after raising the buyback price last week. The Russian steel company had hoped to buy back up to $600m of the bonds.

Alliance Oil has announced a consent solicitation on its $350m 9.875% 2015s but only registered bondholders will be told exactly what the issuer is looking to do.

Ferrexpo has increased to 25% the cash component of its exchange offer. The borrower has struggled to secure bondholder approval to exchange its $500m notes due 2016 and had already extended the early bird deadline.

Turkey's Halkbank priced its new $500m six year bond with a 2bp-3bp new issue premium on Wednesday, but the underlying swap rate had rallied 10bp throughout the day, meaning that the nominal premium was perhaps more attractive than it otherwise would have been.