Central and Eastern Europe (CEE)

A number of untested European companies have made their entrance to the international high yield bond market in the past two weeks as central banks fuel conditions that pamper repeat and new issuers alike, while driving investors into ever riskier assets in a hunt for yield. Karoliina Liimatainen reports.

Aircraft leasing and aviation services company Avia Solutions Group became the latest debutant in the European high yield bond market on Tuesday. Central bank monetary policy has eased the path for a number of debuts in the last couple of weeks.

Turkey's Garanti Bank has raised an $800.7m-equivalent loan refinancing, which was oversubscribed and welcomed new participants.

Russian equity capital markets activity has been on fire with $3.5bn of issuance so far this year, up 369.5% from the year before, and market conditions suggest next year could be even better.

Russian conglomerate Sistema and the Russia-China Investment Fund have sold a Rb15.9bn ($249.7m) chunk of stock in Detsky Mir, the Russian toy store, after a fully marketed offering designed to boost the freefloat of the company and diversify the shareholder base.

The International Finance Corporation returned to the Czech koruna bond market after a 21 year absence this week to place the largest SSA deal in the currency since 2015.

Emerging markets issuers are pumping out mandates, with the buy-side showing little sign yet of closing shop for the year, but investors are not throwing cash at everything.

Czech gaming company Sazka, with lottery operations around Europe, debuted in the euro market on Tuesday with €300m of senior unsecured notes, priced at 4.125%.

Investors had three Ukrainian corporate bonds to buy this week — the first time there has ever been such a choice, according to Dealogic data. The deals defied a tricky market and political turbulence to pull off strong results.

Serbia has returned to the euro market after only four months, tapping the line it opened in June this year and raising cash to refinance dollar obligations it faces in 2020.

The State Export-Import Bank of Ukraine is on screens for its first ever tier two bond, angling for a steep price.

Russian pulp and paper producer Ilim Group has launched syndication to refinance a $500m loan, according to bankers. The loan is one of the last expected to be signed in Russia's international syndicated market this year.