CEE Bonds

Emerging market investors are anticipating a wave of corporate and FIG issuance from across the CEEMEA region, which they say will be welcomed with open arms. Russian petrochemical company Sibur is the latest such borrower looking to being a new bond, hosting investor calls on Monday.

Just one week after selling $1.25bn of bonds, Belarus’s yield curve has widened as protests hit the country.

The coming months are crucial in determining how ambitious the European Union will be in decarbonising its economy to fight climate change over the next decade.

Covered bonds issued by SR Boligkreditt and Vseobecna uverova banka (VUB) this week were well subscribed, reflecting the generous spreads they paid compared to deals by issuers from core Europe.

The Republic of Belarus ditched euros on its return to bond markets on Wednesday, printing two dollar tranches on which it was able to ratchet pricing tighter.

State-owned Hungarian Development Bank (HDB) on Wednesday launched a euro-denominated benchmark bond. The bond marks the third entry into the market by the Hungarian sovereign or one of its entities during the coronavirus pandemic.

Caisse Francaise De Financement Local (Caffil) lost €700m of orders after deciding to price its €1bn 10 year covered bond flat to OATs on Tuesday. But in contrast Vseobecna uverova banka (VUB) was able to price comfortably inside fair value largely because its deal offered a substantial pick-up to other covered bonds.

The Republic of Belarus is taking a second run at the new issue market after its first round of marketing ran into Covid-19.

The Single Resolution Board is asking for new data from banks on their key metrics as of the end of June, with an eye to using the information to tweak their minimum requirements for own funds and eligible liabilities for 2020.

Jorge Masalles Sarragúa has become chief executive of Commerzbank Iberia, as the previous occupant heads to perform the same function for Hungary.

Slovakia's Vseobecna uverova banka (VUB) will offer covered bond investors a rare chance to buy bonds with a considerable pick-up to core European deals, having mandated leads for a €500m five year deal rated Aa2 that is expected to be launched on Tuesday, subject to market conditions which have recently deteriorated.

Ukraine has finally accessed International Monetary Fund support, as the country won access to a $5bn stand-by arrangement this week, but more long running negotiations for an extended fund facility (EFF) are on hold for now.