Central and Eastern Europe (CEE)

After weeks of risk-on behaviour, a cautious mood has gripped Europe’s equity capital markets after several of this season’s biggest IPOs traded badly in the aftermarket.

The Slovakian government has approved an updated version of its covered bond law but while this is likely to improve on the existing framework further work may be needed.

On Monday night, Dmitry Grishin, the Russian entrepreneur, sold a chunk of his stake in Mail.ru Group, the internet services company he co-founded, via an accelerated bookbuild led by Goldman Sachs on the back of reverse enquiries from investors.

Two new Russian commodity deals are in the market, following a flurry of pre-export finance (PXF) facilities earlier in the year. Unsecured formats are proving more popular, while even PXFs are less secure than they used to be.

Fibabanka has shelved plans for an inaugural senior dollar bond despite signs of a recovery in Turkish bank paper.

The $1.5bn flotation of EN+, the aluminium and power company controlled by Russian oligarch Oleg Deripaska, in London and Moscow is coming during a hot time for the aluminium market and will help to seal a partnership between Russian producer Rusal and Glencore.

Credit Europe Bank NV (CEB) announced on Thursday that it was mandating banks for a dollar deal, calling an outstanding bond, and spinning off its Russian subsidiary.

Russian steel company TMK has launched a consent solicitation for its $500m 6.75% 2020s with the purpose of removing IPSCO Tubulars, its US based subsidiary, as a guarantor on the notes. An investor in London said that he expects bondholders to agree to the changes.

The German, Austrian and Italian export credit agencies all agreed at VTB’s Russia Calling Forum in Moscow on Wednesday that Russia was one of their preferred destinations for financing projects, and heads of several Western companies said they had appetite for ECA-backed investment there.

Russian lender Credit Bank of Moscow (CBM) raised Rb14.4bn ($250m) of fresh equity with a 13.4% capital increase this week.

Poland’s Bank Gospodarstwa Krajowego (BGK) printed a €750m long 10 year bond on Tuesday from a book of more than €1.1bn and with only a 3bp new issue premium.

Russian gold miner Petropavlovsk has mandated four banks for its debut in the international bond markets, a dollar benchmark.