Central and Eastern Europe (CEE)

Akbank will widen the margin on its loan by 25bp if the bank is downgraded, a condition the bank’s relationship lenders called for after Turkey’s attempted coup on July 15. But two lenders said the step-up should be bigger.

CEEMEA primary markets have finally become a victim of the summer heat but there’s no snoozing on the beach for syndicate bankers. Planning for the second half of the year has already started in earnest.

A third Turkish bank has returned to the MTN market, joining Vakifbank and Yapi Kredi with a short dated private placement as prices approach the levels they held before the failed military coup on July 15.

Standard & Poor’s upgraded Novolipetsk Steel (NLMK) and Severstal to one notch above the Russian sovereign rating at the end of last week, prompting a rally in their bonds as investment grade funds became able to buy the notes.

Turkey on Friday managed to cling on to its investment grade status after Moody’s left its credit rating on hold.

Export credit agency Turk Eximbank has signed a $750m 10 year loan from international lenders, having secured a €400m deal just last month.

A pair of Turkish banks has returned to the MTN market after a 100bp rally in their secondary levels, marking the first bonds since the failed military coup in Turkey on July 15 and bringing hope that by September, public syndicated bonds may be back on the table.

Indian Oil Corp has awarded two banks the bid for a $300m bridge loan to support the acquisition of stakes in Russian oilfields.

Georgian holding company BGEO Group bought back some $300m of its outstanding bonds on Wednesday. The buy-back came as part of a combined tender and new issue, which was anchored by the International Finance Corporation.

After the initial calm in Turkish loan trading following the country's attempted military coup, a few trades have come to market, finally showing the radical impact of the event on pricing.

Turkish banks have long enjoyed cheap one year loans from international banks but it is now more obvious than ever that the sector should have made hay while the sun shone.

Austrian real estate investment company Immofinanz has enlisted one bank to support its €604m acquisition of shares in fellow Austrian property company CA Immobilien Anlagen. The share purchase paves the way for a merger between the two.