Central and Eastern Europe (CEE)

China has made little headway in persuading the Russian government and Russian institutions into using the renminbi, as the fate of a sovereign bond in the currency remains uncertain and trading of RMB products stalls. But market participants are not giving up just yet, with a new trading platform set to launch next year, writes Paolo Danese.

Czech company Atrium European Real Estate has hit the market with a deal first roadshowed in June, raising €300m with a seven year.

There was little in the way of emerging market bond issuance this week to set the tone for the usually busy month of September. Although mBank raised €500m of four year money, CEE-focused Atrium European Real Estate had yet to appear with a deal that had been planned for Thursday.

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Czech company Atrium European Real Estate has said it is focusing on a seven year bond. That is the long end of the maturity range that had set for the note on Wednesday. But there are no signs yet of price guidance for the deal, which has already been postponed once.

Potential IPO issuers from across emerging markets are waiting for investor sentiment to calm so that they can sell new deals, but many fear that there is little chance of a renaissance for EM this year.

mBank, a Polish financial institution, has hit the market with what will be the first euro benchmark from a CEEMEA borrower in over a month, taking what some investors believe is a cautious approach to reopening the market.

Czech company Atrium European Real Estate is reviving its €300m bond issue this week with a shorter maturity, having roadshowed in June. The deal looks set to be one of the first out of the gates in the emerging markets this week, after a tumultuous summer for that asset class.

Croatia’s Sunce Koncern has signed a €73m club loan from mostly domestic lenders, as the tourism company restructures its entire balance sheet.

Emerging market borrowers and investors are returning from the summer break slowly but surely this week, but caution is still the prevailing tone.

Ukraine sold what Dealogic indicates is its largest international bond in almost a year last week, printing a $725m private placement (PP), easing the country’s cashflow concerns ahead of the expected autumn tranche of International Monetary Fund (IMF) money.

RusHydro, the Russian hydroelectricity firm, has filed for a Rb13bn capital raising in order to fund the construction of overhead power lines.