Central and Eastern Europe (CEE)

Russian metals producer Norilsk Nickel is gearing up to launch a loan with international banks, having already secured a large unsecured facility from Chinese banks this year.

The Republic of Poland will open books on Thursday on the first Panda bond from a CEEMEA issuer and is looking to print with a 3% handle, according to a banker at one of its leads.

Appetite for the longer-dated tranche in Akbank’s refinancing was so low that the deal shrunk by more than two thirds and only received commitments in euros. The one year piece was about the same size, however.

Borrowing conditions for Russian issuers are the best they have been since 2013 and, as changes to onshore funding conditions push more borrowers offshore, several corporates as well as the sovereign are expected to raise international money ahead of US elections in November, according to DCM heads at VTB and Sberbank.

Russian steelmaker Evraz has amended its loan agreements to prevent it from breaching covenants as volatile commodity prices hit earnings.

Korea Development Bank, one of the two co-ordinating banks for Akbank’s loan, stepped away from the mandate last week, it has been revealed, after the attempted military coup left the borrower facing a rating downgrade into junk territory.

Borrowing conditions for Russian issuers are the best they have been since 2013 and as changes to onshore funding conditions push more borrowers offshore, several corporates as well as the sovereign are expected to raise international money ahead of the US elections in November, according to DCM heads at VTB and Sberbank.

The Ministry of Finance of the Republic of Poland has mandated Bank of China and HSBC as joint lead underwriters to work on the sovereign’s upcoming Panda bond.

Akbank will widen the margin on its loan by 25bp if the bank is downgraded. The move is a condition the bank’s relationship lenders required after the attempted coup in Turkey on July 15. While Burgan Bank this week avoided a similar clause, other Turkish banks will likely have to accept them.

Last Friday, Turkey managed to cling on to its investment grade status after Moody’s left its credit rating on hold. But with selling pushing the sovereign wider than several countries with lower ratings, bankers and investors are questioning where the money has been moved to.

SME specialist Belarusky Narodny Bank (BNB) has signed $20m of loans from international lenders and the European Bank for Reconstruction and Development (EBRD).

Burgan Bank Turkey has signed a $150m one year loan which does not include a margin flex if the bank is downgraded. The signing comes as the country’s larger banks face increasing calls to write in such clauses in case of rating changes.