Central and Eastern Europe (CEE)

For emerging market bond investors, every crisis is an opportunity as inflows into the asset class continue to compress yields. Russia, commodity exporters and Mozambique are in focus this week.

Aluminium giant Rusal hit the limelight in March when it became the first Russian corporate to issue a Panda bond. But Oleg Mukhamedshin, deputy chief executive, told GlobalRMB that high onshore yields are delaying the company’s return to the Panda market.

EuroChem had taken books of $1.2bn by lunchtime on Tuesday after opening books on a four year trade a week after finishing its roadshow. Falling oil prices and a Russia sovereign trade last week meant the issuer decided to wait for a firmer market before launching its deal.

Lietuvos Energija UAB will begin marketing the first international corporate green bond from central and eastern Europe (CEE) on Thursday.

The bookrunners on Polish debt collection agency GetBack’s Z1.1bn (€259m) IPO in Warsaw are marketing the deal at an eye-popping discount to its closest peer.

Turk Eximbank, which wrapped up a €412m refinancing in March, has turned its attention to the Asian loan market for a fresh money €300m borrowing.

The governor of People’s Bank of China says Chinese banks must face international competition, the China Securities Regulatory Commission (CSRC) considers changes in Stock Connect daily trading quotas after MSCI’s A-share inclusion, and the Hong Kong Exchange plans to launch CNH and dollar gold futures on July 10.

Recession and lingering sanctions concerns failed to prevent Belarus hammering down on price on its return to the dollar bond market after a six year absence.

Falling oil prices and the imposition of new US sanctions failed to dampen investor demand for Russia’s Eurobond return on Tuesday.

Isbank raised $500m with the 10th deal from a Turkish financial this year with a tidy though somewhat lacklustre trade. While EM bankers suggested it was evidence of some Turkish bank fatigue among investors, the leads said the trade was symptomatic of the weaker market backdrop.

Belarus returned to the eurobond market for the first time in more than six years on Thursday, releasing initial price thoughts for a dual-tranche dollar deal.

Isbank opened books on Thursday for the 10th deal from a Turkish financial this year, offering a higher than usual new issue premium in the process to account for softer market conditions. While the deal is expected to be well absorbed, for some on the buyside, the risks of an Isbank tier two are too much.