CEE Bonds

After months of unprecedented local currency bond fund inflows courtesy of international investors, that market is now under pressure amid rising US Treasury rates and a sudden aversion to EM risk. These markets will not be dampened by foreign fiscal policy forever though, and when rates settle and stability returns some sovereigns will be far better placed to draw cautious buyers back into their local markets.

Turkey will issue nearly TL1.9bn ($975m) of two year ijara sukuk on Wednesday.

Eurasian Development Bank has hired four banks to arrange a US dollar Eurobond.

Turkey is on course to issue a second sovereign benchmark sukuk in the coming weeks, according to market participants — meaning it is likely to be one of the first big deals to reopen the Islamic bond market after its summer lull.

Turkey’s Ziraat Bank is hoping to launch a debut Eurobond later this year, and has picked banks for a benchmark size transaction. The issuer is also looking at breaking into the covered bond and sukuk markets further down the road as part of an effort to diversify away from deposit funding.

Global sukuk issuance in 2013 has lagged 2012’s record levels by some way, with the gap growing wider in recent months. But a strong end to the year, led by large sovereign deals, could help reduce the shortfall.

It has hit more than a few bumps along the way but the International Islamic Liquidity Management Corp’s plans to issue sukuk commercial paper — the first of its kind in the Islamic market — finally look to be coming good. The company said on Thursday that it will issue a $490m debut this month, after more than 2-1/2 years of work on the project.

Promsvyazbank has launched a $1bn euro commercial paper programme, joining a host of other Russian issuers that have entered the market over the past 18 months. But with institutional investors shunning Russian ECP, demand for the bank’s paper will be limited, said dealers.

Russian potash producer Uralkali has chosen four bookrunners for a bond deal, said debt bankers. But the company’s recent announcement that it will leave a joint venture with Belarusian Potash Company has caused sharp losses across the fertiliser sector in both bond and equity markets. Any prospective deal will have to wait until after the fallout has cleared.

Russian potash producer Uralkali has chosen four bookrunners for a bond deal, said debt bankers. But the company’s recent announcement that it will leave a joint venture with Belarusian Potash Company has caused sharp losses across the fertilizer sector in both bond and equity markets. Any prospective deal will have to wait until after the fallout has cleared.

The International Islamic Liquidity Management Corp will this month issue $490m of sukuk commercial paper — the first of its kind in the Islamic market — after more than 2-1/2 years of work on the project.

Promsvyazbank has launched a $1bn euro commercial paper programme, joining a host of other Russian issuers that have entered the market over the past 18 months. But with institutional investors shunning Russian ECP, demand for the bank’s paper will be limited, said dealers.