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Emerging Markets

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◆ Gulf private placements bite back ◆ Bond new issue premiums rise ◆ CLOs catch a break
Business has sagged in the third quarter, but the pipeline is busy, despite an intractable war
Private bonds are now being offered in the open market wider than where public deals trade

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  • A recent resurgence in Russian ECM has gathered pace with the announcement of two IPOs in London and the US, as oligarchs seize the opportunity of a better equity window. Rustranscom (RTC), the Russian freight transportation company, joined this wave after it filed paperwork for a London listing of global depository receipts on Monday evening.
  • Société Générale has appointed a new group country head for Russia, replacing Didier Hauguel, who is stepping down to focus on charity work.
  • CEE
    The Slovak Republic kick-started its 2019 international bond issuance on Tuesday, printing a €1bn 11 year, drawing a book of over €5bn. It paid a “minimal” new issue concession, according to lead managers.
  • TransOil, a Moldovan agricultural exporter, on Monday launched the first ever international bond from the country, completing the deal successfully after a failed attempt last year.
  • Global investors lauded the inclusion of Chinese bonds in Bloomberg Barclays’ flagship index this week as the start of a new era, but onshore bankers said it was only a gesture. Perhaps they are both right. The move will force global investors into the unknown and could redraw the map for global bond investment.
  • Pakistan’s Hub Power Co (Hubco) has launched a rights issue to fund an increase of its stake in the local subsidiary of a Chinese state-owned power company.