CEE Bonds

Sberbank has signalled a reopening if not a renaissance for the Russian Eurobond market with a €1bn debut deal. Gazprombank is next in line and VTB has its eyes on a September sale. The restart in Russian issuance comes as inaugural and long-lost issuers from across CEEMEA move to take advantage of a superb market backdrop.

A lead manager on Gazprombank’s euro five year benchmark said that the deal will not be delayed, after one newswire reported that the issuer was considering putting it back.

Albaraka Turk’s $350m sukuk 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.

VTB, the Russian bank, is likely to print a new international bond in September but has not yet decided on currency or structure. A VTB executive said the bank is not ruling out using US lead managers for the issue.

Sberbank’s €1bn 5.5 year bond, priced on Monday, has provided the visible benchmark from a state-owned issuer needed to consider the Eurobond market unequivocally open for Russian borrowers, said bankers on and away from the deal.

Slovenia's Nova Ljubljanska banka is aiming to price a €300m three year bond this afternoon which would mark its first issue in the last five years. But buyers are divided between those focusing on the positives of Slovenian state support and the negatives of NLB's credit risk.

VAB Bank, the Ukrainian lender, is again asking investors to let it restructure its June 2014 Eurobond after they rejected its first offer at the start of the month. Analysts, though, said that there is no obvious need for a restructuring and that VAB's move has raised the risk that other Ukrainian issuers will try to take the same approach.

PKN Orlen’s debut €500m bond was holding at reoffer in the secondary market on Tuesday morning after the Polish oil refiner took €2.5bn in orders on Monday despite an aggressive spread, said bankers on the deal.

Albaraka Turk has priced $350m of five year sukuk at 6.25%, after drawing around $750m of orders. The Turkish participation bank previously indicated the deal would be benchmark size – typically $500m for international bonds, although sukuk arrangers sometimes use the term to describe smaller offerings.

Sberbank has released initial price thoughts in the mid-to high 200bp over mid-swaps area for a 5.5 year euro denominated bond, offering around a 10bp new issue premium at the tight end and 35bp at the wide according to an investor considering the deal. Tightening is expected before pricing later today. Books are over €1bn.

Oil and petrol company PKN Orlen opened books on the second Polish corporate debut of the year on Monday, and found its €500m no-grow bond five times subscribed when it tightened to final guidance of 160bp-165bp over mid-swaps.

Turkish participation bank Albaraka Turk (rated BB by Standard & Poor’s) has given initial price thoughts of low 6% area on a five year benchmark dollar sukuk.