Central and Eastern Europe (CEE)

Naftogaz announced on Monday that it was coming to market for a six year dollar benchmark — its first of the year. The initial price thoughts indicated a substantial cheapening since its last trip to the bond market in November 2019.

E-commerce listings have been been a high point of equity issuance during the second half of 2020, with the sector generating strong returns for investors. Most of the year’s listings have been completed, but banks are already working on deals from the sector for 2021.

Samolet, the Russian real estate company, has launched the first leg of a two stage listing on the Moscow stock exchange, hoping to take advantage of a surge in demand from local retail investors this year.

The Baltic covered bond market is expected to take another stride forward with the advent of Latvia’s draft law, which currently is being debated in parliament. At the same time, the European Bank for Reconstruction and Development (EBRD) has been working closely with the Bulgarian, Croatian and Ukrainian authorities to help develop the basis for their own covered bond laws.

Aeroflot, the flag carrier of Russia, has finished the first leg of a jumbo recapitalisation backed by the Russian government, amid turmoil in the airline industry due to the Covid-19 global pandemic.

Polish e-commerce firm Allegro has soared in trading on its first day, giving a huge boost to equity capital markets after a difficult period for IPOs.

Rating: B2/—/BB-

The Republic of Turkey on Tuesday raised a five year dollar bond that priced slightly outside of some fair value estimations. However, despite a series of negative events in recent months, including currency depreciation, investors are still keen on getting stuck into Turkish debt, investors say.

Shares in two companies, listed on Wednesday, are trading below their IPO price, with bankers blaming more volatile market conditions for the disappointing moves.

Sovcomflot, the state-owned Russian shipping company, will price its IPO at Rb105 a share, the bottom of it range.

Ukraine priced a $2bn 12 year bond on July 1, tightening pricing to 7.3% yield that was inside the expectations of many market participants as the country passed a major test of international investor acceptance with flying colours.

Hungary wasted little time in turning this year’s increased external funding needs into an opportunity to expand its green bond plans. Yet though sustainability is quickly climbing the list of priorities in Central and Eastern Europe, not all countries are likely to hop on the green bond wagon