CEE Bonds

International Bank of Azerbaijan started investor meetings this week for its first dollar benchmark bond. The issuer can use a recent sovereign benchmark as a pricing reference point, although asset quality and Russian exposure could push it well wide of government spreads.

The primary covered bond market is set to pick up next week, with deals from issuers in the UK, Germany and New Zealand in the offing. Yorkshire Building Society announced its intention to go on the road and bring its first euro deal in five years, Westpac New Zealand has said it also launch a roadshow next week to market the first covered bond since the country enacted a legal framework and Dexia Kommunalkreditbank is set to return with its first deal since 2011.

Moody’s cut Poland’s PGE Group by one notch on Monday, the same day the issuer started investor meetings ahead of its first ever euro bond deal. However, the borrower remains investment grade despite the downgrade, which together with the lack of issuance from CEE corporates is whetting appetites for the issuer’s entry into the international bond market, said debt bankers on the deal.

Société Générale has hired Yury Kiselev as a director in its DCM team covering Russia and CIS Eurobonds. Kiselev was hired from Citi where he was head of local debt capital markets in Russia.

European exchange operator Euronext has appointed VTB Capital’s Andrew Cornthwaite as non-executive director on the board of Euronext UK Markets.

Yury Kiselev, Citi’s head of local debt capital markets in Russia, has left the bank. Kiselev had been hired by Citi in July last year as a vice president to build out Citi's Russian domestic bonds business.

Bank of Communications sold its first ever Swiss franc debt on Tuesday, a three year note. The issuer, which was able to double its target size, is just the second issuer from China to access the Swiss debt market.

International Bank of Azerbaijan has picked banks for its first dollar benchmark bond, and begins investor meetings later this week. The issuer can use a recent sovereign benchmark as a pricing reference point, but poor asset quality and Russian exposure could push it well wide of government spreads.

CEEMEA investors eager for inaugural borrowers have a trio of debut corporate bonds to look forward to. In Latin America, meanwhile, buyers have borrowers at both ends of the rating scale to choose from, with Mexico’s América Móvil and the Province of Buenos Aires in the market.

Trading in Russia’s sovereign bonds has returned to levels last seen before the country moved troops into Crimea at the end of February, but bankers say that new international dollar bond issuance from the country is still not imminent.

Moody’s cut Poland’s PGE Group by one notch on Monday, the same day the issuer started investor meetings ahead of its first ever euro bond deal. But the borrower remains investment grade despite the downgrade, which together with the lack of issuance from CEE corporates is whetting appetites, said debt bankers on the deal.

Russian Sberbank Asset Management and Invest AD, the Abu Dhabi Investment Company, have signed a Memorandum of Strategic Cooperation. The document establishes areas of co-operation between the two companies in Russia, the CIS, and Middle East.