Central and Eastern Europe (CEE)
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Issuer’s second bond in 20 years tightened 15bp from initial guidance -
More CEE supply will come if the market permits
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Covered bond supply is set to slow down as blackout approaches
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Most indications of interest have come from domestic accounts
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Another new deal from a low triple-B issuer should encourage others in EM
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Investors were concerned earlier in the year that Romania was issuing too much
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It had hoped to raise funds off longer dated bonds but investors are too risk-averse
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It can take years to prepare bonds in some markets, but that can bear fruit
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Euro market does not offer the size or duration it used to
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Lithuania also considering returning to the US as the euro market struggles
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BGK had been unable to tighten pricing back on May new issue
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Other CEE issuers will take note but not read much into the outcome of BGK's deal
