CEE Bonds

South Africa's FirstRand Bank made its Swiss franc debut on Tuesday afternoon, becoming the second issuer from the country to tap the market in recent years. The investor bid was strong enough for the issuer to follow up with a swift increase the day after pricing.

Albaraka Turk has picked arrangers as it aims to follow participation bank peer Turkiye Finans’s recent return to the dollar sukuk market. But one investor warned that Albaraka may find its deal more challenging.

South Africa's FirstRand Bank made its Swiss franc debut on Tuesday afternoon, with leads able to outstrip the issuer's minimum size ambitions.

FirstRand Bank is set to sell its inaugural Swiss franc bond on Tuesday afternoon, following fellow South African lender African Bank which has issued at least once annually in the currency for the last three years.

Air Berlin has announced plans for a €450m debt restructuring in which the loss-making German airline’s main shareholder, Etihad Airways, will give it a much-needed equity injection by buying a €300m convertible bond.

Kyrgyzstan is looking to introduce rules for sukuk and takaful in the country and has engaged international law firm Simmons & Simmons to set up a consultancy.

Frankfurt struck a blow this week in its battle to become Europe’s primary hub for renminbi business when German state development bank KfW became the first issuer to list renminbi bonds on the city’s stock exchange. The city is likely to become a popular spot for European issuers — particularly German corporations — listing similar debt.

A new Russian effort to side-step closed Western bond markets is to begin with an imminent Asian roadshow by Gazprom, according to a source close to the blue chip. Rusagro, Russian Agricultural Bank, Alrosa and Sberbank are among other Russian borrowers also considering turning to Asia for financing, according to London-based syndicate officials.

Montenegro is on the road next week, visiting investors in Zurich and Geneva on Tuesday, Munich, Vienna and Frankfurt on Wednesday and London on Thursday. Citi, Deutsche Bank and Erste Bank are arranging the meetings.

Turkey’s Albaraka Turk and Kuveyt Turk plan to issue dollar sukuk before the Ramadan religious holiday in June, according to three people with knowledge of the matter.

Sanctions on Russia were met with a sigh this week as an ineffectual list with limited impact on the Russian economy was unveiled. Even S&P’s downgrading of the country to BBB- from BBB made no waves. But the rolling list of sanctions is limiting western interest in loading up on more debt from the country — so it is a good job Gazprom is leading the charge elsewhere.

KfW has become the first issuer to sell Frankfurt-listed renminbi bonds, printing a two year deal on Tuesday in what was seen as the latest step in the city's bid to become Europe’s main centre for renminbi business, with bankers now expecting other issuers to follow KfW’s lead.