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Private placements are not unknown for CEE sovereigns, but this is the biggest for years
Market participants have highlighted drop in Uzbek bond volumes this year
Uzbek issuance has fallen to near zero after a busy few years
Bookbuilding slower than normal due to the restart of war between the US and Iran
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Turkish lender Aktif Bank has signed a $45m murabaha export financing agreement with the International Islamic Trade Finance Cooperation (ITFC). Additional support for Turkish exports is badly needed — Turkish GDP growth has slowed to well below the government’s 2014 target level, and recent data indicates that exports are one of the few areas of the economy preventing a deeper drop, said emerging market analysts.
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Primary and secondary bond markets held steady on Friday as the European Union's new round of sanctions against Russia took effect.
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White goods company Arcelik priced the first ever sub-investment grade emerging market euro deal with no high yield covenants on Wednesday. While bankers claim the deal paves the way for more Turkish corporate deals with no covenants, they admit that only an elite group will be able to follow.
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The European Union and the US are poised to enforce new sanctions on Russia today (Friday), leaving the loan market shut to larger transactions until the end of the year. Smaller club deals may, however go ahead.
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Russia’s VTB Capital has been making headway into Asian debt markets in an effort to keep its fixed income teams in London and Moscow busy during a sanctions enforced shutout from their usual hunting grounds. But even when normality returns the bank will remain committed to its Asian operations, and is hoping for more mandates from Asia — and potentially Africa — later in the year, Andrey Solovyev, global head of DCM at VTB Capital told GlobalCapital Emerging Markets.
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As stronger EU sanctions continue to dangle over Russia by a thread, bankers say the international market for Russian loans is closed until the end of the year. The sanctions package could come into force on Friday.