Central and Eastern Europe (CEE)

Political unrest in Belarus has thrown up difficult questions for emerging market investors, as ESG concerns rise and those who would buy still not seeing an attractive opportunity to do so.

Local lenders in central and eastern Europe have stepped up for local clients during the coronavirus pandemic. Structural factors will help them fortify their position against international banks should infections rise again.

A tumultuous week in Turkish currency markets ended with the lira hitting new lows against the dollar and the Central Bank of the Republic of Turkey finally taking action to try and calm volatility. Amid such swings, a sovereign bond issue looks unlikely.

Akbank, one of Turkey’s largest financial institutions, has raised a green bond, the first of its kind from the country since the Covid-19 pandemic began.

Turkey continued to teeter on the brink of a currency crisis this week, as the lira went on another rollercoaster ride and touched a record low.

The Ukrainian Exchange is reviving its FX futures market, two years after authorities shut down its trading software system.

Polish oil refiner and petrol retailer PKN Orlen has raised a revolving credit facility. The Polish corporate is in the process of acquiring two fellow Polish energy corporates, as bankers predicted an uptick in M&A activity.

Less than a year ago, international investor optimism about Ukraine was high but the journey to western style reform since then has shown just how hard a road it can be to travel.

CEEMEA bond bankers are pinning their hopes on the EU's €750bn recovery fund to spark green issuance once again. The market has been moribund since Covid-19 drew issuers' attentions elsewhere, with a debut deal from Georgia Global Utilities (GGU) — a portfolio company of London-listed Georgia Capital — one of very few recent highlights.

International investors hoping for reform in Ukraine were again disappointed on Friday when the deputy governor of its central bank, the National Bank of Ukraine, resigned from his post.

Falls in the Turkish lira have reignited concerns about a currency crisis this week, with the Central Bank of the Republic of Turkey’s (CBRT) unorthodox exchange rate policy raising questions from investors about the robustness of the country’s respected banking sector. Mariam Meskin and Ross Lancaster report.

Despite the success of many emerging market sovereigns in issuing bonds in international markets this year, Turkey, typically a leading issuer, has been notable by its absence. And with its foreign exchange reserves running lower, the risks of it not being able to come to market at all could be mounting.