CEE Bonds

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.

The European Bank for Reconstruction and Development has said in a research note that stable funding for global banks in central and eastern Europe is the biggest factor determining whether they benefit local economies.

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

Russian banks and corporates have around $5.9bn of international bonds maturing before the end of this year. The list includes paper from Sberbank and Gazprombank which are both sanctioned by the US and EU. Origination bankers evaluate the likely methods of refinancing.

Poland’s MBank Hipoteczny has issued its fifth and sixth covered bond deals of the year which combined to form the largest ever issue denominated in Polish zloty. The self-led deal will benefit from the new Polish covered bond law, which should be implemented in January 2015 and which is likely to offer a considerable rating uplift, and that boosted demand sufficiently for the leads to issue a size bigger than planned.

4Finance, a Latvian short-term lender with operations across Europe, sold its $200m five year put three bond on Friday despite a rocky week in EM and high yield secondary trading.

VTB, one of the Russian banks which has been sanctioned by the US and EU, has said that despite the restrictions put in place international banks are still helping to finance the firm.

Westpac New Zealand broke more than a month of silence from international issuers in the Swiss franc market on Tuesday, selling a new six year print. The deal was priced around flat to outstanding paper, with investors starved of primary and secondary supply willing to take the aggressive level.