CEE Bonds

Jastrzębska Spółka Węglowa, the European Union's largest coking coal miner, has mandated Credit Suisse and JP Morgan to arrange a Eurobond.

The mesmerising allure of euro issuance has diminished in CEEMEA. Emerging market bankers are expecting euro denominated deals to be less prominent in the rest of 2014 than they have been so far this year. But several issuers may remain more active in future in the currency than they have been in previous years.

With all that has happened in the last few months in Russia and Ukraine, heads of DCM must be thinking about taking axes to their headcounts. But to start swinging them would be foolish when the market could still bounce back and annual refinancing volumes are about to rocket.

The mesmerszing allure of euro issuance has diminished in CEEMEA. Emerging market bankers are expecting euro issuance to be less prominent in the rest of 2014 than it has been so far this year. But several issuers may remain more active in the currency than they have been in previous years.

Two Ceemea issuers —Turkish Finansbank and the Eurasian Development Bank (EDB) — have revealed their capital markets plans for the next few months.

Turkish Finansbank has ruled out the possibility of coming to the international bond markets again before the end of the year but is looking ahead to the possibility of issuing another dollar bond again in 2015.

With all that has happened in the last few months in Russia and Ukraine, heads of DCM must be thinking about taking axes to their headcounts. But to start swinging them would be foolish when the market could still bounce back and annual refinancing volumes are about to rocket.

The Eurasian Development Bank has no plans to access the international debt capital markets for the rest of the year, despite $120m of its $500m 7.375% bonds maturing on 29 September.

Banks are under pressure to lend to Russian borrowers. But although bankers have grown accustomed to moving mountains for the Russian issuers, they should not fear the repercussions if this time they cannot.

With around $5.9bn of international bonds maturing before the end of this year, Russian banks and corporates face an uncertain future in the global capital markets as US and EU sanctions begin to bite. Among borrowers that have maturities looming are Sberbank and Gazprombank which are both sanctioned by the US and EU.

Poland’s MBank Hipoteczny has issued its fifth and sixth covered bond deals of the year, the largest issues denominated in Polish zloty in the asset class.

The CEEMEA bond market has ground to a halt, with bankers now set to take it easy until September. But what a pipeline is building — one big emerging markets bank said they are expecting to bring between five and 10 deals in September if the market is calm, while another described his pipeline as “two handfuls'” worth.