CEE Bonds

International Bank of Azerbaijan’s return last week to the Eurobond market and its announcement of capital injections may lead to a reappraisal of its Ba3/—/BB rating, according to a banker on the deal.

Gazprombank offered CEEMEA borrowers definitive proof that euros can offer tighter pricing than the dollar market this week, writes Steven Gilmore. The bank sold a €1bn five year bond at a level that bankers on and off the deal unanimously agreed was more advantageous than what the issuer could have achieved in dollars. The result gives added ammunition to syndicate officials arguing that Turkish and Middle Eastern issuers should be doing the same.

Russian mining firm Norilsk Nickel priced a $1bn seven year bond flat to its own curve late last week, attracting over $6.7bn of orders amid a surge in risk appetite after a temporary solution was found to the US debt ceiling problem. But perfect timing and a weak Norilsk curve means other issuers are unlikely to be able to cast off new issue concessions, said debt bankers.

Vneshprombank has picked bookrunners for its first international bond issue and will begin investor meetings later this month ahead of a Reg S dollar transaction.

Gazprombank offered CEEMEA borrowers definitive proof that euros can offer tighter pricing than the dollar market this week. The bank sold a €1bn five year bond at a level that bankers on and off the deal unanimously agreed was more advantageous than what the issuer could have achieved in dollars.

VTB Bank priced a new long four year Swiss franc bond on Tuesday, tightening pricing from initial guidance and securing good arbitrage against its cost of funding in dollars.

Gazprombank started execution on its first euro benchmark on Wednesday morning. While the main purpose of the five year deal is to broaden the bank's investor base, bankers on and off the deal said that tight pricing could allow it to finish flat or even inside where it could fund in dollars.

Vneshprombank has picked banks for its first international bond deal, and begins investor meetings later this month ahead of a Reg S dollar transaction.

EM bonds are back, with investors being offered a wide choice of credits and currencies to pick from. CEEMEA borrowers have answered investors' increasing risk appetite with deals in euros, dollars and Swiss francs this week. Banks, corporates and sovereigns have all launched bonds and debt bankers expect more to follow before Friday's close.

Russian metals producer Norilsk Nickel priced a $1bn seven year deal flat to its own curve late last week.The borrower attracted over $6.7bn in orders amid a surge in risk appetite after a temporary solution to the US debt ceiling debate.

A series of foreign issuers are lining up to tap a heavily liquid investor base in the Czech Republic, dealers told EuroWeek Emerging Markets on Monday.

Syndicate officials are looking forward to a busy few weeks for corporate issuance in Swiss francs, with Gazprom’s six year deal this week showing that strong names — particularly those with a yield pick-up on offer — can find healthy demand even in tricky climates.