Central and Eastern Europe (CEE)

Turkey is on track to continue its recovery in financial markets, as inflation declines and the lira rebounds from its crisis of August, according to syndicated loan bankers.

Emerging market issuers are hesitant to rush back into the market in the new year. Most are waiting on the sidelines until the tone becomes more settled and investor desks are fully staffed.

Turkey’s inflation fell for the second month running in December, prompting some analysts to predict that the central bank will cut the main interest rate in January, much to the concern of syndicate bankers.

Russian shipping firm Sovcomflot has closed a $264m club facility with five international lenders, although the outlook for Russian companies in the syndicated loan market remains questionable going into the new year.

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.

Bankers have confirmed that Garanti Bank has closed syndication for a $1.15bn refinancing loan this week.

Russian Copper Co (RCC) has closed a $250m five year credit facility, marking the second refinancing that RCC has secured this year. The tight margin sparked a sliver of optimism in the market.

Banks with large exposures in Romania took a beating in the financial markets on Wednesday, after the country’s government unveiled plans to introduce a new tax on banking assets.

Once a darling of emerging markets investors, Turkey flirted with disaster in 2018 when instead of battling out-of-control inflation it followed voter-pleasing policies and plunged into a recession, amid a poisonous combination of political and monetary forces. Although Turkey and its banks have swiftly regained debt market access, its future is clouded by the harsh realities of global economics, write Lewis McLellan and Mariam Meskin.

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.

The US slammed the international bond market shut to Russian borrowers in April by imposing sharp sanctions on a few private companies. Seven months later Gazprom sold a euro bond, but it is a unique credit. Investors are still terrified of another kicking from Western authorities. Francesca Young speaks to Russian borrowers about how they are planning their funding in uncertain times.

Hungary’s latest Panda looks, at least on paper, like a club deal rather than a genuine syndicated bond, with bankers disagreeing on how the deal might have played out in the market.