Central and Eastern Europe (CEE)

In a rare instance for CEE countries, Romania has printed 30 year dollar bonds.

The Central Bank of Russia (CBR) is planning new rules from the start of July that will ramp up the risk weighting on foreign currency loans, which is expected to lead to a tumble in non-ruble lending in the country at a time when international banks are steering clear. Mike Turner reports.

Slovakia, Croatia and Romania dived into the primary bond market this week — all keen to take advantage of what has been by recent standards a rare period of market stability to print.

Romania has released initial price guidance for a dollar bond offering around a 30bp-40bp pick-up over its outstanding curve, according to a banker away from the deal.

The Republic of Croatia pulled pricing for its €750m 2.7% 2028 bond 30bp tighter than initial price guidance on Wednesday, bringing the reoffer spread nearly flat to the outstanding curve.

Emerging market loans bankers are clinging to their tranquil view of Turkey amid soaring bond yields in the country. The insular nature of borrowing practices there means international lenders are exposed almost exclusively to Turkey’s banks.

The Republic of Croatia released initial price guidance for a 10 year bond on Wednesday morning and books for the deal are already in excess of €1.3bn.

Slovakia sold 10 year and 50 year bonds from a combined book of over €5bn on Tuesday, the first European sovereign bond since Italy-led volatility last week turned government bond traders’ screens into a kaleidoscope of reds and greens. It was also the longest CEE print in over a decade.

Slovakia revised pricing downwards on its rare 50 year bond on Tuesday morning, after taking books of over €5.3bn with the first trade from the central and eastern Europe region for nearly two weeks.

EN+, the London-listed aluminium and hydrogroup which was torpedoed by US sanctions in April, could soon be free as its majority shareholder Oleg Deripaska prepares to sell down his 66% stake in the group to below 50%.

The Slovak Republic is exploring the possibility of issuing a rare 50 year euro-denominated bond as markets stabilise after a tough week.

EPP, a Polish real estate investor specialising in shopping malls, has mandated banks for a euro bond, joining Atrium European Real Estate in the rush to issue the first non-financial corporate bond from CEE since early May.