CEE Bonds

Turkiye Finans has led the return of Turkish participation bank issuers to the sukuk market after nearly a year of absence, achieving a strong result this week that leads on the deal hailed as a door-opener for its peers.

Russia’s domestic bond market is not deep enough to cover all issuers’ total refinancing needs, but getting it working again to show that issuers do have access to funding has its own value.

Romania opened books on a 10 year benchmark euro deal with a slim starting premium on Tuesday morning. But a resurgent economy and strong fiscal fundamentals justified the price thoughts, said debt bankers on the deal.

VTB Capital has let go one of its fixed income syndicate team as part of a number of job cuts at the firm.

At $1.5bn, the order book for Turkiye Finans’s $500m sukuk return on Tuesday was not to be sniffed at. But demand didn't reach the dizzy heights of this year’s other dollar sukuk deals, and that is thanks to the market’s last issuer, Damac Real Estate Development.

Turkiye Finans priced its $500m five year sukuk inside guidance at 5.375% on Tuesday. But while some market participants felt the early $750m interest received signalled a "sluggish" bookbuild, this grew to $1.5bn despite the tighter price – and demand continued in the secondary market.

SID Bank (Slovenska izvozna in razvojna banka) released the spread for a new 2015 exchange note on Monday morning, which is only open to holders of its 2015 government guaranteed debt.

Turkiye Finans will look to issue $500m of five year sukuk on Tuesday, said investors, with pricing for the notes expected to come around 375bp over z-spread by at least one investor.

Turkish Bank Garanti Bank gathered a $5.5bn book for its $750m October 2019s on Thursday and used the demand to price the note flat to its curve.

BBVA Chile became the first triple-B rated Chilean financial to tap the Swiss franc market on Thursday, illustrating Swiss investors' increasing ease with Latin American financials.

Romania has picked four banks from its primary dealer list to lead manage a euro-denominated bond, according to two sources away from the deal.

The Russian domestic market is not liquid or deep enough to replace international funding for all borrowers, said two Russian domestic bonds specialists, even though some banks and corporates say they will be able to roll external funding over in the domestic market.