CEE Bonds

Hopes have been fading that the sukuk market will see a record level of dollar issuance in 2014, with bankers suggesting that there may be only two or three more international deals to print before the end of December. But with Flydubai setting its sights on an earlier debut launch than previously expected, the year could still be on for a photo finish with 2012.

Finansbank sold its fourth dollar denominated MTN on Monday, as Turkish banks’ high yields are attracting short term investors away from emerging market stalwarts including India and China.

Banks in the eurozone are piling into the Russian rouble bond market. They want to source as much financing as possible locally to limit cross-border exposure in the face of Western sanctions

Romania is planning to issue a long euro benchmark and has picked four banks for the deal.

Russia’s liquidity-parched banks are ready to sidestep their exclusion from international capital markets by issuing domestic bonds in foreign currency. While the local non-rouble market is still in its infancy, sizes of up to $1bn are under discussion for the new issues — with the country’s sovereign wealth fund a potential buyer.

Turkiye Sinai Kalkinma Bankasi (TSKB) has picked banks for its inaugural dollar bond and kicks off investor meetings next week.

Czech Raiffeisenbank has mandated leads for the first publicly distributed euro-denominated benchmark Czech covered bond, which is expected to be launched following a roadshow. The transaction, which is eligible for repo with the European Central Bank and documented under English law, is likely to be followed by a string of other euro denominated Czech covered bond benchmarks.

Romania is planning to issue a long euro benchmark and has picked four banks for the deal.

Escalating tensions in Turkey overnight led to a softening in bond prices on Wednesday, adding to a month long sell-off in the country. But bankers aren't expecting primary supply to be affected, with financial issuers likely to be opportunistic.

Alexander Kiselevich, a managing director in corporate banking in Moscow, left Bank of America Merrill Lynch at the end of September.

Russian banks are coming under increasing pressure because of liquidity constraints and with the international markets all but closed, several have announced plans to issue foreign denominated domestic bonds.

Any lull in the international sukuk market after September’s record monthly issuance is set to be brief, say bankers, with the Republic of Turkey looking likely to be at the front of the next flurry of deals.