Estonia

More debut issuers are expected in 2023, but the Ukraine war could deter buyers

Issuer’s second bond in 20 years tightened 15bp from initial guidance

Investors are ready to put their piles of cash to work

Observers expect more issuers to roadshow then decide against bringing deals

Eesti Energia returns for first bond since 2015

Firm set to wade into growing Estonian covered bond market

Investors pour demand into seldom seen senior names

Luminor Bank was more than 3-1/2 times subscribed on its return to the euro market on Wednesday, allowing it to demonstrate a year-on-year improvement in its senior funding costs.

Trading levels given are bid-side spreads versus mid-swaps and/or an underlying benchmark and bid-yields from the close of business on Monday, June 8. The source for secondary trading levels is ICE Data Services.

Estonia returned to the capital markets on Wednesday after 18 years away, introducing itself to a new set of investors as an SSA borrower.

Estonia’s LHV Pank sold its first covered bond on Tuesday, attracting very good demand for the sub-benchmark deal, which provided it with long term funding from new investors.

The Republic of Estonia has mandated for a 10 year benchmark bond, as it prepares for its first foray into bond markets since 2002.