CEE Bonds

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.

Naftogaz did itself few favours this week with its farcical approach to repaying holders of its $1.6bn Eurobond. When Ukraine’s state owned oil and gas company missed its bond payment on September 30, it risked more than a few irate investors.

Ukrainian state-run oil and gas company Naftogaz has confirmed the repayment of its $1.6bn eurobond after failing to meet its September 30 deadline. While the delay did not come as a surprise to many, bondholders were left with sweaty palms on Wednesday and whispers of default did not do the country’s capital market standing any favours.

Bonds newly issued by Polish chemicals firm Synthos had traded down more than two cash points by early this week, with some bankers blaming the deal execution and warning that the trade might have hurt the chances of other Polish firms wanting to access the market. Bankers on the deal defended the sale, saying the issuer had set a very ambitious price target.

Ukrainian state run oil and gas company Naftogaz has confirmed the repayment of its $1.6bn Eurobond after failing to meet its September 30 deadline. While the delay did not come as a surprise to many, bond holders were left with sweaty palms on Wednesday and whispers of default did not do the country any favours.

A meeting of European Union ambassadors in Brussels on Tuesday to discuss the eastern Ukraine crisis has concluded without officials seeking changes on sanctions against Russia. But, contrary to various reports elsewhere, the meeting had no brief to make such a call on sanctions in any case and a date to do so has not been set.

Polish corporate Synthos has taken a hit in the secondary market and is trading two and a quarter cash points down from reoffer. Critics attacked the deal execution and warned that the trade may hurt future Polish corporates wanting to access the market. But bankers on the deal defended the sale and said the issuer had set a very ambitious price target.

Polish synthetic rubber firm Synthos made a strong debut on Wednesday with a €350m seven year non-call four debut offering. Rarity of supply from both the sector and from Poland buoyed investor support for the deal which offered a pick-up over the usual state and state-owned corporate deals from the country.