Central and Eastern Europe (CEE)

Ukrainian steel and mining company Metinvest was one of several emerging markets issuers to tap bond markets this week. The deal was several times oversubscribed, confirming that investors are still on the hunt for yield and are willing to look to single B rated emerging market credits for that.

Alexander Nesis, the Russian billionaire who is the largest shareholder in gold miner Polymetal, sold a 4% stake in the company on Thursday - the fifth trade in the name this year.

Rating: Baa2/BBB/BBB

This week’s £1.88bn ($2.43bn) IPO of The Hut Group (THG) in London is leading to hopes that European technology firms will follow in listing on their home markets rather than in the US.

Sovereign green bonds are becoming almost commonplace in Europe, but not all are convinced. Slovakia has no intention to enter the market, saying it is a costly exercise that “would not help anyone”.

The Republic of Bulgaria issued a €2.5bn dual-tranche bond on Tuesday to support its expanding state budget, following a raft of its regional peers which are responding to the Covid-19 crisis with substantial deals.

Sovcomflot, the state-owned Russian shipping company, has launched its listing on the Moscow stock exchange, reopening Russia’s IPO market after a long drought of deals.

There is still a fair chance of benchmark covered bond supply from central and eastern Europe this year, though it will be limited. Supply scarcity should support spreads alongside a fundamental improvement as all legal frameworks will be updated to bring them into line with the European Union’s covered bond directive.

During the last week, Turkey’s currency has hit damning lows and the sovereign has been given another credit downgrade. Many say these events should prompt the country to enact serious fiscal and monetary reforms.

The Republic of Bulgaria has mandated banks to arrange a dual tranche bond in euros, making it the latest sovereign to add to the swelling supply from the central and eastern European (CEE) region.

Allegro, the Polish e-commerce company, launched its long-awaited Warsaw IPO on Monday. The transaction could be one of the largest of the year, according to sources close to the deal.

Hungary returned to the Samurai market after a two year absence on Friday to sell the first ever sovereign green bond in the market, which formed part of its ¥62.7bn (€500m) four tranche deal, which the sovereign used to extend its debt curve while also introducing a new investor base to the credit.