Central and Eastern Europe (CEE)

Romania this week returned to the international debt markets to issue euro-denominated bonds.

Market participants are bracing themselves for the Central Bank of the Republic of Turkey’s monetary policy meeting next week, which they hope will result in interest rates being held. Though market access for the sovereign remains difficult, markets are showing some signs of stabilisation.

Mobile TeleSystems, Russia’s largest mobile operator, has sold a social bond in roubles, as it became the latest major Russian corporate to foray into ESG financing. The issuer has not ruled out a return to international markets, although in recent years it has pivoted towards domestic funding.

Nordgold, the Russia-headquartered gold mining company, has become the latest borrower from the country to enter the green financing market after it raised an ESG-linked syndicated loan.

Fix Price, the Russian discount retailer, became a public company at the beginning of March in a $1.9bn IPO on the London Stock Exchange. Its CFO Anton Makhnev sat down with GlobalCapital to discuss the deal.

Play, the Polish mobile network operator, has raised a syndicated loan from European banks, according to sources, while total volumes from central and eastern Europe’s biggest economies have been low so far this year.

GV Gold, the Russian gold miner, has postponed its listing on the Moscow Stock Exchange as a difficult IPO market and falling prices in the precious metal force the company to rethink its plans.

Russian borrowers are swarming the loan market despite a broader decline in emerging market loan volumes. Borrowers are pushing for tighter margins and longer tenors, as they grapple with the effects of the Covid-19 pandemic and fresh US sanction threats.

Segezha Group, the Russian paper and pulp company, is exploring a number of capital markets options to help finance growth. These include a green bond and a potential IPO, Rovshan Aliyev, vice-president of finance, tells GlobalCapital.

Confidence in Turkish assets hit fresh lows this week as investors struggled to digest a fresh wave of volatility after its central bank governor was sacked following an interest rate hike. With government and bank funding needs to be met in the international market, the Central Bank of the Republic of Turkey has a big job on its hands in regaining investor confidence — though some say the damage has already been done.

Belfius cancelled a consent solicitation for one of its tier two bonds this week after the Single Resolution Board took the market by surprise and broadened the scope of its grandfathering period for ‘Brexit bonds’.

As emerging market IPOs continue to draw investors into countries many have never invested before, Turkey remains an obvious absentee. The country could be an EM equity giant but political decisions by its government continue to hinder Turkish businesses.