CEE Bonds

Russian potash firm Uralkali has opened talks with DCM and loans bankers as the firm looks ahead to its 2014 financing.

Hungary’s Export-Import Bank has picked banks for a euro benchmark deal, which will come with a guarantee from the World Bank’s Multilateral Investment Guarantee Agency (MIGA), said bankers involved in the sale.

Lower volatility in the euro bond market than in its dollar counterpart is prompting some bankers to look at possibilities for CEEMEA borrowers in the common currency.

A slump in sterling on Thursday afternoon made the currency even less attractive for CEEMEA and left Gazprom, which had mandated banks for a sterling transaction, on the sidelines. It is flexible on currency and has no desire to launch into a weak market.

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.