Central and Eastern Europe (CEE)

Emerging markets have leapt back into action as investors take full advantage of the wider levels on offer in the asset class. Even some of the sector’s most turbulent credits are coming to market.

Yapı ve Kredi Bankası is planning an additional tier one dollar benchmark that looks likely to be the first issue of non-sovereign international bonds from the country since April.

Slovenia hit screens with the first sovereign bond of 2019 on Monday, undergoing some price discovery but closing a successful deal and paving the way for other countries to follow suit.

The Slovenian government is out with a 10 year euro bond issue on Monday, which will be priced later today. Bankers away from the deal say the highly rated issuer is a good soft test of investor appetite for CEEMEA debt.

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.