CEE Bonds

Comments from Belarus’ president Alexander Lukashenko that the country may hold debt restructuring talks this year sent Belarus’ 2015 Eurobond crashing 26 cash points, according to one banker. However the Ministry of Economy later clarified that Belarus fully intends to service its debt and that the president had accidently said restructuring when he meant to say refinancing, sending the bonds back up nearly 18 points.

EU foreign ministers met in Brussels on Thursday, January 29, to discuss imposing further sanctions on Russia, following an upsurge in fighting in east Ukraine during the previous weekend. But there is doubt whether the EU will be able to unanimously agree to extend sanctions, as Greece’s new government said that it did not consent to an EU statement calling for broader sanctions, which was released on Tuesday.

Slovakia’s Eustream, a crucial pipeline that carries Russian gas to Europe, has mandated Citi, ING, Société Générale and UniCredit to arrange a series of fixed income investor meetings in Europe starting on Monday.

Vakifbank priced the first ever Basel III compliant tier two bond on Monday, a $500m 10 year non-call five. But though bankers estimated that the bond paid around 115bp-116bp over its old style tier two bullet 2022s, they said it was difficult to strip out the cost of the addition of point of non-viability features.

Russian officials are due to present plans for a bad bank to the government on Friday, as part of a range of measures unveiled on Wednesday aimed at combating the sharp economic downturn. But the creation of a bad bank is the most uncertain of all the proposed measures, said Russian bank analysts, and has attracted opposition from high ranking ministers.

Comments from Belarus’ president Alexander Lukashenko that the country may hold debt restructuring talks this year, sent Belarus’ 2015 Eurobond crashing 26 cash points. However the Ministry of Economy later clarified that Belarus fully intends to service its debt and that the president had accidently said restructuring when he meant to say refinancing.

Raiffeisen Bank International will cut its risk-weighted assets by 20%, in a move aimed at reducing its exposure to Russia and bolstering its capital buffer.

Belarus’ president Alexander Lukashenko has suggested that the country may hold debt restructuring talks this year, just weeks after the country sent out an RFP for a new Eurobond. The news sent Belarus’ 2015 Eurobond crashing 26 cash points. Emerging market bankers warned of a contagion effect in EM debt restructuring.

Slovakia’s Eustream, a crucial pipeline that carries Russian gas to Europe, has mandated Citi, ING, Société Générale and UniCredit to arrange a series of fixed income investor meetings in Europe starting on Monday.

Russian officials are due to present plans for a bad bank to the government on Friday, as part of a range of measures unveiled on Wednesday aimed at combating the sharp economic downturn. But the creation of a bad bank is the most uncertain of all the proposed measures, said Russian bank analysts, and has attracted opposition from high ranking ministers.

Greece's new government on Tuesday said that the EU did not have their consent for the statement released condemning Russia's alleged involvement in the Ukraine crisis and calling for broader sanctions. Analysts see the move as one designed to put pressure on the EU for a re-profiling of the country’s debt and has raised questions around whether the EU will now be able to escalate Russian sanctions without giving in to Greece.

Vakifbank priced the first ever Basel III compliant tier two bond on Monday, a $500m 10 year non-call five. But though bankers estimated that the bond paid around 115bp-116bp over its old style tier two bullet 2022s, they said it was difficult to strip out the cost of the addition of point of non-viability features.