CEE Bonds

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.

Croatia’s new €1.25bn eight year bond was trading at or slightly wide of re-offer on Friday, according to debt bankers on and off the deal. The €3.8bn final book, comprising 375 accounts from across Europe, should help support the bond in the secondary and proved the issuer’s strategy of approaching a wide range accounts had paid off, said debt bankers on the deal.

Russian assets held firm on Friday in advance of Ukraine’s parliamentary elections on Sunday. Rather than take profit from an impressive week-long rally that has left Russian bonds hovering close to where they were before the Crimea crisis began in February, investors have bet on a market friendly outcome from the Ukraine vote. A resounding win for frontrunner Petro Poroshenko could allow Russian bonds to start closing in on levels last seen in January, said debt bankers.

Turkiye Finans looks set to become Turkey’s first participation bank to enter the Malaysian sukuk market as it received an AA3/Stable rating for its proposed MR3bn ($930m) sukuk programme from RAM Ratings.

Rating: Ba1/BB/BB+

Croatia launched a €1.25bn bond on Thursday morning, drawing over €4bn of demand for its first international deal in the currency for three years. Though beset by political problems and an ailing economy, the sovereign's popularity was enough to allow an increased deal size at a spread inside its dollar curve.

The Croatian sovereign launched a €1.25bn euro bond on Thursday morning, drawing over €4bn of demand for its first international deal in the currency for three years. Though beset by political problems, an ailing economy and seemingly unable to address either, the sovereign's popularity was enough to allow an increased deal size at a spread competitive to dollar levels.

China Construction Bank (CCB) Frankfurt Branch’s landmark offshore renminbi bond on Monday was met with strong demand in a market that has been buzzing with activity. Bankers said the success of the deal, which is the first CNH bond from a subsidiary of a Chinese name to settle, clear and list in Frankfurt, sets the stage for the city to become a popular destination for offshore RMB issues.

Agrokor, Croatia’s largest privately owned business, is raising €475m of loans bearing features more commonly seen in high yield bond issues.