CEE Bonds

This week’s CEEMEA and Latin American bond deals were trading up across the board on Friday, regardless of whether they offered chunky or non-existent new issue concessions. And while relative value rather than fundamentals drive investors’ decisions, the emerging market rally is only going to run and run, said bankers.

China Construction Bank (CCB) Asia printed the first ever dim sum bond to be issued in Switzerland on Thursday, selling a Rmb1.25bn ($203m) three year print. The deal highlights the renminbi’s growing presence in Europe.

Turkish banks pushed on apace with international funding drives this week, despite rising fears over Iraq knocking some froth off their recent strong rally. Isbank and Kuveyt Türk priced well with benchmark bonds and sukuk, while Albaraka Türk completed its sukuk meetings and Ziraat Bankasi announced plans to go on the road with a long-awaited inaugural dollar deal.

This week’s CEEMEA and Latin American bond deals were trading up across the board on Friday, regardless of whether they offered chunky or non-existent new issue concessions, reports GlobalCapital. And while relative value rather than fundamentals drive investors’ decisions, the emerging market rally is only going to run and run, said bankers.

Russian state controlled banks Sberbank and Gazprombank are preparing to bring the first benchmark deals from the country in almost four months. Deep demand, competitive pricing and lower execution risk have pulled both borrowers to euro market — Sberbank for the first time. Bankers and buyers are predicting smooth execution, and welcomed the first real sign of the Russian market’s rehabilitation.

China Construction Bank (CCB) Asia is out in the market what bankers believe is the first dim sum bond to be issued in Switzerland as the bank deepens its involvement in the renminbi’s burgeoning presence in Europe.

Munich Re could potentially shave another 75bp off the price of its cover for US hurricane and Australian cyclone risk next week, after putting out price guidance for the tenth catastrophe bond from its Queen Street platform.

Poland’s PZU Group has picked banks for a debut bond deal, following fellow Polish corporate debutants PGE and PKN Orlen into the euro market.

Turkish participation bank Kuveyt Turk has priced a $500m five year sukuk at 340bp over mid-swaps, the tight end of refined guidance, after drawing $3.25bn of orders.

National Bank of Ras Al-Khaimah (Rakbank) sold its $500m 3.25% five year bond at 160bp over mid-swaps on Tuesday afternoon, going straight from the initial guidance of 170bp area to pricing. Order books reached $1.6bn at their close.

Commercial Bank of Qatar priced its first dollar deal in more than two years flat to its existing curve on Tuesday after attracting more than $3bn of demand.

Sberbank and Gazprombank have mandated banks for euro denominated bonds with roadshows to take place in the next week.