CEE Equity

The US Treasury has lifted sanctions on Rusal and EN+, the aluminium and energy companies formerly controlled by Russian oligarch Oleg Deripaska, but the fear of further sanctions against Russian companies remains.

The US Senate on Wednesday rejected legislation that would keep sanctions on companies linked to Russian oligarch Oleg Deripaska, including aluminium firm and bond issuer Rusal and London-listed energy company En+. Although many investors and bankers are hailing this as a victory for Russia that could reopen the international capital markets for its issuers, others are concerned that it makes further US sanctions against other Russian entities more likely. Francesca Young and Sam Kerr report.

Confidence is sweeping through the CEEMEA bond market as huge volumes for some of 2018’s most maligned issuers have pushed volumes up to record breaking levels for the first fortnight of a year. But despite the strong start, some bankers are concerned that the difficulties of last year are a whisker away from making a comeback. Francesca Young, Lewis McLellan and Sam Kerr report.

Russian financial markets were greeted with mixed news on Wednesday after the US Treasury announced sanctions relief for EN+ and Rusal on the same day as imposing more sanctions on Russian individuals.

A host of emerging market opportunities are set to be presented to equity investors in 2019 with Kazakhstan likely to lead the way with a number of highly anticipated listings. Sam Kerr reports.

Akbank, one of the largest banks in Turkey, is preparing a TL3bn ($558m) rights issue amid fears of an increase in non-performing loans as the Turkish economy enters a slowdown.

The $450m IPO of Kazatomprom, the Kazakh state-owned producer of natural uranium, is due to be priced at $11.60, the bottom of the initial range, valuing the business at $3bn.

The Republic of Slovenia has priced the flotation of Nova Ljubljanska Banka at a final offer price which values the bank at €1bn, fulfilling a commitment to privatise the bank before the end of the year.

TFI Tab Food Investments, the owner of the Burger King chain in Turkey and China, has formally withdrawn its $220m IPO in the US after delaying it in February.

The market volatility of recent weeks has claimed another IPO victim, Belarusian retailer Eurotorg, which postponed its listing on Tuesday, the last day of bookbuilding.

Two listings from Slovenia and Belarus are due to close this week and the sellers are hopeful of getting the deals across the line, despite market challenges.

The privatisation of Kazatomprom, the Kazakh producer of natural uranium, moved ahead on Wednesday after bookrunners kicked off a marketing roadshow and set a price range for the listing.