CEE Bonds

Year to Date Central and Eastern Europe DCM Bookrunner Ranking

The run of Russian bank bonds continues despite escalating tensions in the Ukraine, with Promsvyazbank picking leads for its first tier two transaction under Russia's new Basel III rules.

Russian Railways opened books on a nine year euro bond on Thursday morning, after waiting four weeks from the end its roadshow to start execution. After such a long wait the choice of market window surprised some debt bankers away from the deal.

Brazilian lender Banco Safra and Banco de Chile are set to sell Swiss franc debt on Thursday, underlining Swiss investors’ appetite for Latin American paper.

Polish media group Cyfrowy Polsat is in talks with banks to refinance around €589m-equivalent of debt as it seeks to fulfill the necessary conditions to complete its purchase of Metelem Holding Co, owner of telecom firm Polkomtel.

Gazprombank drew over four times the demand it needed for a $750m bond on Tuesday, finding investors' appetite undiminished despite a rating agency report warning of Russian banks’ exposures to Ukraine, where tensions continue to escalate.

Indian state-owned oil company Bharat Petroleum sold its debut Swiss franc on Tuesday morning, the first deal in the currency from the country since 2012. Brazilian financial Banco Safra could follow with a Swiss deal of its own in the near future.

Australian lender Bendigo and Adelaide Bank is set to sell its debut Swiss franc bond on Tuesday afternoon, adding variety to a market where Australian issuance has been dominated by a small number of issuers.

The sukuk market has started slowly in 2014, but IFIS data for announced deals suggests there is enough in the pipeline to surpass last year’s total issuance. High profile deals could come from both regular borrowers and those tapping the market for the first time.

Gazprombank opened books on a 5.5 year dollar bond on Tuesday morning, which debt bankers away from the deal said had opened with a generous starting spread.

Poland snatched up funding in the Schuldschein market last week, and is expected to return to the market again this year. Elsewhere, financial institutions from the country are expected to print more private placements.

When the Central Bank of Russia redefined the point of non-viability language for subordinated debt late last year, investors won a rare and important battle. However, the new language removes much of the functionality of subordinated debt and takes away any discretion the CBR previously had in triggering a bail-in. Many structuring specialists are now wondering whether the CBR had given too much away and made it too easy for investors.