Central and Eastern Europe (CEE)

Moody’s cut Turkey’s investment grade rating to junk on Friday, as anticipated, but comments the agency made last week caught investors off guard. However, despite the initial sovereign sell-off, a rally has begun.

With a $7.5bn book and a deal sold wholly to international investors, Russia returned to the capital markets in style on Thursday, shrugging off the ghosts of failure that blighted its return in May.

With clearing concerns behind it, Russia’s $1.25bn tap of its 2026s bonds was met with massive demand on Thursday — the book was reported to be over $6bn — but some say a moral dilemma remains.

Rating: BBB/BBB

Rating: B1/—

Russian Railways (RZD) is weighing up the first rouble Eurobond for several years as low global yields boost support for rouble denominated debt.

A surprise upgrade from Standard & Poor’s has prompted Hungary’s international debt to rally 30bp and take its credit default swap surging inside that of Italy, the most traded sovereign CDS reference entity.

Semperit, a rubber and plastic goods manufacturer, has come to the Schuldschein market with a uniquely diverse deal; as an Austrian firm issuing to a largely German market, in Polish and US currencies.

mBank priced a new four year euro denominated bond through its existing curve on Wednesday as investors shrugged off concerns over Polish bank risk.

Fertiliser producer EuroChem signed a $800m pre-export finance facility (PXF) refinancing last week, with the borrower shuffling its bank group as Chinese lenders play a growing role in Russian corporate loans.

Russia wasted no time reopening its 2026s after the US Federal Reserve left rates unchanged on Wednesday. Now Euroclearable, the tap is expected to achieve plenty of demand from investors who didn’t play the first time round, but some say a moral dilemma remains.

O1 Properties printed the first syndicated international deal from the Russian property sector on Tuesday. While lead bankers acknowledged it was not an easy deal, the issuer was able to increase it from the planned $300m to $350m.