CEE Bonds

Lithuania has released initial price thoughts for a €1bn 12 year bond at 115bp over mid-swaps, offering a 25bp new issue premium, in line with the pick-up offered at the same stage by Romania on Tuesday. Bankers away from the deal said that they expect 10bp-15bp of tightening before the deal prints.

CEEMEA deals have returned after the sell-off last week. Despite a persistent soft tone to the market TSKB printed its $350m five year bond on Tuesday while Romania sold a €1.5bn deal. Meanwhile, Polish coal company JSW has embarked on investor meetings for a bond and Lithuania has put out guidance for a new deal.

Jastrzębska Spółka Węglowa started the roadshow for its dollar denominated Reg S/144A bond on Wednesday (22 October) via Credit Suisse and JP Morgan.

Turkish Development Bank Türkiye Sınai Kalkınma Bankası has tightened price guidance for its $350m five year bond to 387.5bp-400bp over mid-swaps. The bank released initial price thoughts for its debut at 400bp over mid-swaps earlier on Tuesday morning, having waited for a calmer market window since the end of its roadshow last week. Despite the tightening, one analyst still saw the pricing as generous.

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.