CEE Bonds

Swiss syndicate bankers are debating whether investors will shun a tier two bond being issued by VTB Bank this week following Russia's annexation of Crimea earlier this year. The issuer completes a roadshow in Switzerland on Wednesday.

Primary emerging market issuance may have slowed this week but borrowers are still churning out mandates. Russian, Nigerian and Peruvian borrowers along with the South African sovereign are all putting plans in place, which should ensure a busy run up to the summer break.

Garanti Bank sold a €500m five year bond on Tuesday in line with initial price thoughts — an unusual event in CEEMEA where pricing is typically tightened. But a syndicate official on the note said he was pleased with the result, and one away from the deal said Garanti’s generosity may have been necessary after a string of Turkish bank deals in the last month.

Garanti Bank has set final yield guidance for its five year €500m no grow bond at 3.5%, in line with price guidance earlier in the day. But some rival bankers said they had expected to see a tighter print.

Overall CEEMEA supply this year may be down almost $25bn on the same time in 2013, but second quarter issuance was only slightly shy of the total sold over the same period last year. The healthy pick-up in issuance allowed some bookrunners — including Deutsche and HSBC — to redress a sluggish start to the year but the top trio of Citi, JP Morgan and Barclays remained in place

A Russia-focused DCM banker is leaving Deutsche Bank after four years with the firm.

Russia’s VTB Bank on Friday mandated lead managers for a Swiss franc roadshow this week, paving the way for what could be the first deal in the currency from a Russian issuer since January.

This week’s barrage of CEEMEA bonds were all trading at or above reoffer in the secondary market on Friday, although euro deals from Russian duo Gazprombank and Sberbank led the pack in terms of performance.

Turkiye Finans has issued a five year MR800m ($249m) sukuk as the first tranche of a MR3bn sukuk programme, making it the first Turkish participation bank to borrow in the ringgit market.

Volkswagen Financial Services has launched its first rouble bond, raising Rb5bn (€109m) and furthering its strategy of raising finance for its lending in local markets.

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Bulgaria brought its first benchmark deal in two years on Thursday, printing a €1.493bn long 10 year bond from an order book close to €4bn.