CEE Bonds

Eurobond restructuring has followed bleak third quarter results from Ukrainian companies, as military conflict in the country intensifies. First Ukrainian International Bank (FUIB) is asking investors for permission to restructure Eurobonds maturing in December. The bank joins metals and mining holder Metinvest, which is trying to restructure a $500m deal that matures in 2015.

Hopes for a big end to the year in dollar sukuk issuance have been triple-boosted this week, with Pakistan reviving its plans to come to market while Flydubai and Mumtalakat are set to begin roadshows on Thursday. A grand finale has been made possible – but it will need fast work.

Bankers working on a loan for Promsvyazbank believe the hotly anticipated deal is imminent – and that it will do more to reopen the international market to Russian borrowers than Gazprom did with its bond last week.

mBank, Commerzbank's Polish unit previously known as BreBank, is roadshowing a euro-denominated bond via Barclays, Commerzbank, Credit Suisse and JP Morgan.

Books for Poland coal firm, Kompany Weglowa’s bond closed on Friday but with no update as yet on pricing, bankers away from the deal have become curious as to whether the deal has been postponed. But the bond is still live, said a syndicate official on the note.

Gazprom’s $700m one year deal this week was brought to market with the best of intentions. The company wanted to re-open the international dollar bond market for other Russian issuers and felt that it was its duty to do so, being the only big state-owned borrower not subject to capital market sanctions.

Gazprom’s dollar deal on Wednesday may have grabbed the attention of emerging markets bankers eager to see Russian borrowers back in bonds, especially as it was twice subscribed. But any hopes of a flurry of Russian comeback issuance were shot down by bankers away from the deal in London who said a number of factors dented the trade's credentials as a pathfinder for the energy giant's compatriot borrowers.

Gazprom’s potentially market re-opening $700m one year bond has been twice subscribed. US investors have even been calling the company to complain about being scaled back in the allocation process on the Reg S/144A deal, signalling a u-turn in investor appetite for Russian risk.

Gazprom is planning a one year dollar bond and has released price guidance at a yield of 4.75%-5%.

Kompany Weglowa has released initial price thoughts for a dollar benchmark five year bond at 9% yield area. As the company is 100% state-owned, this will make the bonds eligible for JP Morgan’s EMBIG (Emerging Market Bond Index Global) index. Syndicate officials away from the deal praised leads for having made this clear early as they said this, together with the bond's juicy yield, would likely drive demand higher.

Turkish port operator Global Liman İşletmeleri (Global Ports) on Thursday reduced its debut bond issue by $25m to $250m and priced it at with an 8.125% coupon at a reoffer price of 99.345.

One of two Polish coal company deals on Tuesday disappeared off of screens as Jastrzębska Spółka Węglowa postponed its bond issue. That left Kompany Weglowa (KWSA) in the market with bankers away from the remaining deal apprehensive about the levels of demand. This was despite a banker on the deal saying the success of either company in the bond market would have no bearing on the other.