Central and Eastern Europe (CEE)

The EM primary bond market took just one day to digest Donald Trump’s unexpected ascent to the US presidency before new issuance resumed with a Gazprom bond. But uncertainty about what Trump will actually do could lead to volatile markets, increasing the cost of any issuance.

Croatian food and drinks maker Agrokor has refinanced €340m of loans from VTB Bank, marking the end of a €840m loan refinancing programme.

The EM primary bond market took just one day to digest Donald Trump’s unexpected ascent to the US presidency before new issuance resumed with a Gazprom bond. That was far quicker than the seven days it took the market to reopen after the Brexit vote on June 23.

Donald Trump’s shock success in the US presidential election in the early hours of Wednesday met staunch resistance as far as EM asset prices were concerned. But dealers apportioned this to technical factors underpinning the market and warned that the long term impacts of the poll result are yet to be seen. GlobalCapital dissects the impact on EM region by region.

Remarkable resilience in the face of an uncertain future was the tale of emerging market bond prices on Wednesday as Donald Trump won the presidential election in the US, much to the surprise of EM traders themselves, who expected the risk aversion to last much longer. But the outlook for EM bonds under a Trump presidency is far from rosy. Latin America has been the clear underperformer so far but more pain is expected.

Investor support for Turkey has proved remarkably resilient this year. A coup attempt and ensuing state of emergency, and two downgrades to junk, did little to shake support, but Turkey’s luck is running out as the attention turns to deteriorating economic indicators from the region.

Russia plans to roll out a futures contract for crude oil by the end of this month, fulfilling a goal that has alluded the country for over 10 years but which the government believes will be a major step for its economy.

Turkish bonds sold off some 30bp on Friday after President Recep Erdogan’s crackdown on the country’s pro-Kurdish opposition escalated with two high profile arrests. The widening is likely to halt Turkish bond issuance for this year, according to an EM DCM banker focused on the region.

Citi has promoted its Turkey CEO into a broader role of EMEA head of non-presence countries.

Nine banks have been mandated to arrange the financing for the leveraged buyout of Polish online marketplace Allegro, and a senior loan will be launched into syndication later this month.

Renaissance Capital has hired a new head of international equity capital markets, and its US subsidiary RenCap Securities has added two senior bankers to its fixed income, currencies and commodities team.

Equity block trade business came back to life this week, as sellers hastened to monetise stakes before the US presidential election.