CEE Bonds

Turk Eximbank has returned to the international market for the first time since 2012 and opened guidance on a new seven year bond on Tuesday.

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Synthos SA, a leading manufacturer of chemical raw materials in Central and Eastern Europe, is meeting investors for its debut bond.

The US unleashed further sanctions against Russia on Friday afternoon, following the EU on Thursday. The rouble was hit as a result and concerns are growing that if the sanctions continue beyond 12 months, corporate growth in Russia may be impacted as new Russian names were added to the US's sanctions list.

Turk Eximbank has mandated Barclays, Citigroup, JPMorgan, MUFG and Mizuho Securities to arrange a seven year dollar bond. The deal will likely be around $500m, according to an origination official on the deal.

Primary and secondary bond markets held steady on Friday as the European Union's new round of sanctions against Russia took effect.

White goods company Arcelik priced the first ever sub-investment grade emerging market euro deal with no high yield covenants on Wednesday. While bankers claim the deal paves the way for more Turkish corporate deals with no covenants, they admit that only an elite group will be able to follow.

The European Union and the US are poised to enforce new sanctions on Russia today (Friday), leaving the loan market shut to larger transactions until the end of the year. Smaller club deals may, however go ahead.

Russia’s VTB Capital has been making headway into Asian debt markets in an effort to keep its fixed income teams in London and Moscow busy during a sanctions enforced shutout from their usual hunting grounds. But even when normality returns the bank will remain committed to its Asian operations, and is hoping for more mandates from Asia — and potentially Africa — later in the year, Andrey Solovyev, global head of DCM at VTB Capital told GlobalCapital Emerging Markets.

Poland printed a seven year Swiss franc deal on Wednesday. The issuer visited the market — its first time since May 2012 — to refinance a five year bond in the currency set to redeem later this month, according to bankers in Zurich.

Home appliances and consumer electronics company Arcelik priced the first euro denominated bond ever from a Turkish corporate on Tuesday. As a rare Turkish corporate with no need for dollars the issuer was able to escape the burdensome swap costs of earlier dollar deals, which helped it save some 40bp in funding costs, said a debt banker on the deal.

The Republic of Turkey firmed price guidance for its 10 year JBIC-backed Samurai at 27bp-31bp over yen swaps on Tuesday morning.