CEE Bonds
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Oil and petrol company PKN Orlen made a €500m debut in the euro market this week, and took €2.5bn in orders for its five year note on Monday despite an aggressive spread, said bankers on the deal. The success of CEE debutants like PKN has prompted a hefty pipeline of other inaugural corporate issuers.
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Polish insurer Powszechny Zaklad Ubezpieczen (PZU) became the third Polish issuer to make a euro debut this month, pricing a five year note with an aggressive spread that reflected the issuer’s credit quality, rarity and pick-up relative to its western competitors.
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Turkey’s Ziraat Bankasi brought a long awaited debut deal on Thursday, 13 months after picking a lead manager line-up for its first international transaction. Three other issuers also picked the same day to launch bonds, but rarity value meant Ziraat had no trouble attracting investors. -
Gazprombank and Sberbank declared the Russian Eurobond market open for business after a four month break this week. Both issuers sold successful euro deals from healthy order books, after starting with what bankers away from the transactions saw as generous guidance. But bankers are sceptical the duo’s success will prompt a run of follow-on Russian deals.
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Gazprombank gave the recovering Russian market another shot in the arm with a smoothly executed five year bond, which attracted around €5bn in orders. Debt bankers away from the bond felt the starting point was generous, but leads tightened guidance by 37.5bp from initial price thoughts to final yield.
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Turkey’s Ziraat Bankasi brought a long awaited debut deal on Thursday, 13 months after picking a lead manager line-up for its first international transaction. Three other issuers also picked the same day to launch bonds, but rarity value meant Ziraat had no trouble attracting investors.
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Bulgaria brought its first benchmark deal in two years on Thursday and is breezing through execution on a long 10 year bond that is expected to be priced this afternoon.
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The final push to issue bonds and sukuk before the start of Ramadan next week saw Albaraka Turk price $350m of five year sukuk this week, capping off a run of dollar sukuk and Turkish deals in June.
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Albaraka Turk’s $350m sukuk rose held its own in early trading on Tuesday at par to one eighth over, despite needing two days to get $750m orders together for the deal.
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Polish insurer PZU is likely to target a five year tenor for its debut euro deal, which could be priced as early as Thursday, according to bankers on the deal. The bond would be the third Polish debut in less than month, and investors can look forward to at least nine more inaugurals from CEE corporate borrowers this year.
