CEE Bonds

Slovakia’s Eustream closed a €250m twice-subscribed tap of its €500m 2020 bond on Tuesday, having waited just over a month to take a second bite of the debut bond at a better price.

Slovakia’s Eustream closed a €250m twice subscribed tap of its €500m 2020 bond on Tuesday, having waited just over a month to take a second bite of the debut bond at a better price.

Albaraka Türk, the Turkish unit of the Bahraini Islamic bank, is planning to issue $200m of sukuk towards the end of this year or the beginning of next year.

Gazprombank, which sold a rare dollar private placement on August 16, is open to considering reverse enquiries for private deals in a wide range of currencies and maturities — so long as the cost of funds suits the borrower, according to a company official.

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.