Central and Eastern Europe (CEE)

Ukraine set the terms on its €1bn seven year bond on Thursday afternoon, taking advantage of a huge bid for CEE euro sovereign deals this week and a rally in the country’s own debt since president Volodymyr Zelensky was elected at the end of April.

A bevy of names from central and east Europe issued bonds this week and more are lining up amid a dramatic mood shift among investors.

Všeobecná úverová banka (VUB) has issued the first ever 10 year covered bond from Slovakia, thanks in large part to the high spread that ensured a 0.5% coupon — a return that investors demand — but one that is now out of reach for most European names in this tenor.

Georgian TBC Bank printed its long-awaited $300m five year bond on Wednesday from a book of over $700m.

Ukraine has released initial price guidance for a euro deal that the country has been waiting to print since before Volodymyr Zelensky’s presidential victory in April.

The Republic of Croatia launched its €1.5bn 10 year bond on Wednesday afternoon in London from a book of €6.4bn at a level 7bp inside of fair value, according to a lead manager on the note.

TBC Bank, Georgia’s largest bank by assets, loans and deposits, has set the size for its debut dollar bond at $300m and order books for the deal are already well over that amount.

OP Corporate Bank offered sold a senior non-preferred bond in euros on Wednesday, the whose success of which surprised market participants with its pricing and demand of more than three times the deal size. Oberbank also went to market with a senior preferred bond that did not attract as much demand.

GeoProMining printed its $200m five year bond on Wednesday and a banker on the deal said the success of the note was a further sign of how much more comfortable investors have grown with Russia credit.

The Republic of Lithuania has set spreads on its 10 year and 30 year euro bonds having crunched 10bp from initial guidance.

If the date of one major capital markets event in Russia is anything to go by, the locals have given up on attracting US investors all together.

BAWAG, SP Mortgage Bank and Tatra banka have all set their sights on the euro covered bond market, mandating for deals across the maturity spectrum.