Central and Eastern Europe (CEE)

Turkey has returned to the market with a euro trade as it looks to re-engage with investors and refresh its “stale” curve.

Tensions in the GCC are rattling the buyside as both bank and non-bank investors wait for clarity over how the rift between Qatar and other regional states will develop. In the broader CEEMEA debt market, investors are eyeing Turkey’s new euro trade as an opportunity to find some juice in the low yield environment, and anticipating the dual tranche offering from Côte d’Ivoire on Thursday.

Republic of Turkey has turned to euros for its second trade since its constitutional referendum on April 16, as Yapi Kredi markets a lira denominated Eurobond.

Garanti Bank is expected to issue the first green mortgage-backed Turkish covered bond, which will be privately placed with the International Financial Corporation (IFC) and certified by a third party.

For the second time this year Norilsk Nickel tried to push its luck with pricing, only to find that investors would not support it through to the tight end of guidance.

In this week’s round-up, the Hong Kong Exchange’s USDCNH futures record their second best trading volume on Wednesday, renminbi deposits in Hong Kong increase by 4.1% in April, and China and Germany agree to co-operate on trade and finance.

Oil and gas company MOL became the first Hungarian issuer in the Schuldschein market this week. And, as the market expands further from Germany, there is no sign that credit quality will become less central to an issuer’s success.

Struggling Croatian food conglomerate Agrokor wants fresh financing from its biggest lender Sberbank, adding to its existing €1bn debt with the bank and said it is close to a new loan from other banks.

Intesa Sanpaolo has finally launched into general syndication a €5.2bn loan that it solely underwrote for the acquisition of a 19.5% stake in Rosneft by the Qatar Investment Authority and Glencore, after months of delay and reports that it might not happen.

Norilsk Nickel had taken a book of $1.4bn for its new April 2022 and looked to be on track to print with its lowest coupon ever as it makes use of the seemingly unstoppable bid for emerging market assets.

Latvia launched a €350m dual tranche tap of its 2026 and 2036 bonds on Thursday morning, its second visit to the international markets this year.

Tinkoff Bank is targeting a return to the Eurobond market after an absence of more than four years, following a pair of rating upgrades in recent months.