CEE Bonds

Romania has released initial price thoughts for a 10 year euro benchmark at 200bp over mid-swaps, representing a pick-up of 20bp over the country’s outstanding curve, according to an origination official away from the deal.

Turkish bank Yapi Kredi printed a $500m five year bond last week on a day when its curve widened 25bp. Going ahead with the deal seemed self-defeating to many, but GlobalCapital believes Yapi Kredi behaved honourably, and investors should reward its honesty in future deals.

New Europe Property Investments has mandated Deutsche Bank, Investec and Raiffeisen Bank International to arrange a series of fixed income investor meetings. The roadshow for a bond starts on Tuesday.

The dollar sukuk market is on course for a photo finish with 2012’s record volume, with flydubai pushing forward plans for a debut deal and market participants suggesting volatile macroeconomic conditions have added impetus for another prospective borrower, Turkey.

Finansbank sold its fourth dollar denominated MTN on Monday as Turkish banks attract short-end investors with higher yields than their peers in other emerging markets such as India and China.

The dollar sukuk market is on course for a photo finish with 2012’s record volume, with flydubai pushing forward plans for a debut deal and market participants suggesting volatile macroeconomic conditions have added impetus for another prospective borrower, Turkey.

Gazprom is considering pricing a dollar or euro benchmark bond before the end of this year. Analysts and investors said it would be possible but only at the right price and with strong anchor orders.

Swiss franc supply was limited to one deal from Canton of Ticino this week as global concerns weighed on the market but a roadshow by Korea Resources Corporation (KoRes) raised the prospect of higher beta supply once spreads stabilise.

Turkey's Yapi ve Kredi Bankasi astonished the market on Wednesday by seeming to accomplish what looked like an impossible feat — pricing a $500m five year bond in a day where its curve was sent 25bp wider in spread terms by US Treasury volatility.

Fitch has issued a guarded opinion on recent changes to the Polish covered bond law that had been expected to improve issuance prospects. The amended law, which introduces pass-through structures and mandatory liquidity facilities, should have theoretically led to higher ratings. But the agency said the impact of the new regulation may in practice be more modest by not pushing ratings down.

Turkish Yapi ve Kredi Bankasi astonished the market on Wednesday by seeming to accomplish what looked like an impossible feat — pricing a $500m five year bond in a day where its curve was sent 25bp wider in spread terms by US Treasury volatility.

Gazprom is considering pricing a dollar or euro benchmark bond before the end of this year. Any potential euro deal would be placed by Deutsche Bank and Crédit Agricole. US banks would be used for a dollar deal, but the mandate for a potential dollar note has not yet been signed.