CEE Bonds

Hulusi Horozoğlu, previously head of global capital finance and debt finance at HSBC Turkey, has been promoted to assistant general manager, head of banking and capital financing. He is now responsible for all debt financing products as well as the bank’s investment banking operations which includes its M&A and equity capital markets business, global banking coverage, multinationals business and FIG.

Rosinterbank, a second tier Russian bank, has revived its plans for a debut renminbi-denominated bond, holding one-on-one investor meetings this week in Asia. The bank had appeared to be close to launching a bond back in August, but some bankers think it will not be much easier to get a deal away now, unless the borrower is prepared to price very generously.

Russian Standard Bank is hoping to take a short cut to Basel III — using a consent solicitation to add write-down language to its old tier two debt. For investors worried about getting caught on the wrong side of the vote, RSB's proposal looks aggressive. But the function of bank capital is to protect the bank, not to simply reward investors without risk.

Promsvyazbank has repurchased just under 20% of its old style tier two 10.2% 2019s at market price. Analysts said this was a positive sign that the bank has liquidity and is comfortably capitalised.

Metinvest has received bondholder consent to exchange its $500m 10.25% 2015s after a lengthy approval process – including one amendment to terms and a deadline extension – which began on October 21.

Akbank’s German subsidiary, Akbank AG, will begin roadshowing its inaugural bond with investor meetings next week. But with few EM banks issuing from developed market subsidiaries, the price discovery process will be more difficult.

Bulgaria is looking to raise a medium term bridge loan of as much as Lev3bn ($1.92bn) in international markets ahead of a government bond issue next year.

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.