CEE Bonds

Gazprombank postponed a tier two Swiss franc bond on Thursday with investor appetite lacking in light of a volatile market stemming from political turmoil in Portugal and Egypt. Coupled with rising interest rates that increased the appeal of high grade developed market credits in Swiss francs, questions abound over whether the Swiss franc’s emerging market revolution might be beginning to slow.

Gazprombank has postponed its planned Swiss franc tier two bond, with market volatility spoiling the issuer's plans. However, the Russian bank may return to the Swiss franc market in the future, EuroWeek understands.

Korea National Oil Corp (KNOC) returned to the Swiss franc bond market on Wednesday morning to sell a long five year bond.

Russia's DeltaCredit Bank opened books on a Rb5bn ($151m) five year covered bond on Tuesday. It already has enough orders but will keep books open until Friday, said bankers on the bond.

Gazprombank is beginning a roadshow this week ahead of a potential Swiss franc deal. Rising rates mean top quality domestic and core European credits can once again offer Swiss investors acceptable coupons. But there is still room for emerging market borrowers to bring deals, said bankers.

Ural Bank for Reconstruction and Development closed a small tier two deal on Monday afternoon. The uncertain backdrop is preventing benchmarks but Russian compatriot Bashneft found investors receptive on its recent roadshow, and its debut Eurobond will be well supported when it comes, said bankers.

Ural Bank for Reconstruction and Development is planning a tier two dollar deal, and bookrunners on the bond have not ruled out execution despite another surge in volatility following Wednesday’s US Federal Open Market Committee meeting.

Russian oil company Bashneft is planning a debut Eurobond and has mandated Barclays, Citi and Sberbank to arrange a dollar Reg S/144A deal. The roadshow for the deal started in the US on Wednesday and finishes in London on June 24.

Slovenska izvozna in razvojna banka (SID Bank) has bought back €299m of its government guaranteed bonds.

The Slovak Republic sold its debut Samurai bond on Tuesday morning, placing a ¥30bn trade split between three and five year notes. The deal followed a number of successful recent Samurais from financial institutions, and bankers say there is more issuance in the format in the pipeline.

Slovenska izvozna in razvojna banka (SID Bank) has bought back €299m of its government guaranteed bonds it announced this week. The Slovenian bank increased the tender amount after receiving strong interest from investors.

The Slovak Republic sold its debut Samurai bond on Tuesday morning, placing three and five year notes. The final size exceeded the issuer’s expectations, though demand was heavily weighted towards the shorter dated paper.