CEE Bonds

Agroton Public, the Ukraine-based agricultural company, has further delayed interest payments on its $50m notes due 2019 after bondholders voted in favour of the extraordinary resolution on Monday. The company’s operations have been severely impacted by the fighting in eastern Ukraine and analysts say its financial outlook is dire.

Russian Standard Bank has increased the late consent fee it is offering investors in a tier two capital bond to upgrade the security to new norms, after failing to entice enough investors before the early bird deadline.

It’s no secret that Russia right now is not great for business. Tough sanctions and terrifying fines have led many banks to conclude that it is not worth keeping expensive bankers covering clients which will not be doing deals until Putin or the West back down.

Fears that the Ukraine may suffer a sovereign default have intensified after the IMF found the country needed an additional $15bn to avoid financial collapse. While the IMF and US may get the country through the current liquidity crisis, its longer term outlook is now very weak — with one research house putting the likelihood of its 2017 debt being rescheduled at 70%.

Turkey Akbank’s German subsidiary, Akbank AG, has postponed its planned euro denominated bond. Uralsib is now the only EM issuer in the pipeline that has completed investor meetings and not officially delayed its bond. The Russian bank finished meetings for a subordinated bond on November 20 via JP Morgan and UBS. Bankers away from that deal say that the note is unlikely to be printed before the end of the year but there may be one other new issue next week.

Armenia’s Ardshinbank has become the first private sector entity from the country to issue a private placement and its CFO said it will “definitely” be back again.

Turkey Akbank’s German subsidiary, Akbank AG, has postponed its planned euro denominated bond.

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.

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.

Nick Hutt has been appointed as CEO of VTB Capital plc, VTB Capital’s international operations. Hutt, who is based in London, had been interim CEO of VTB Capital plc since July 2014 and before that had been working as its CFO. He replaces Atanas Bostandjiev, who left to pursue other business opportunities.

Despite some bankers insisting that the raised fixed cost of staff must have played a part in forcing banks to slash Russia business this year, recruitment professionals told GlobalCapital this week that capital and liquidity costs have been more of a driver than the EU’s bonus cap.

The International Monetary Fund (IMF) estimates that Ukraine needs to find an additional $15bn to avoid financial collapse. News of this funding deficit has sent shockwaves through the market, but analysts are confident that Ukraine will have funding options and that it is too early to fear default.