April was a poor month for bond issues in Central and Eastern Europe (CEE) as the two biggest markets – Russia and Turkey – were both suffering from political problems that depressed demand.
Central Europe issued a total of only four bonds worth collectively $1.9bn, which was less than half of the $5.8bn issued in the same month last year. In all the April crop of CE bonds was down by half or more compared to every year for the last three years.
However, year to date CE is still ahead of last year with a total of $20.7bn worth of issues over the first four months of this year compared to $19bn over the same period a year earlier. CE got off to a really good start to the year with issues worth between $5bn and $7bn each month for the first three months, before the market dried up in April.
Amongst the biggest issues was a €1bn sovereign issue by Slovakia that matures in 2030 and yields 0.75%. CPI Property Group also issued a €500mn bond that yields 4.875%.
The story was similar in Eastern Europe where a total of nine issues raised a total of $1.8bn that was significantly down on the $5.2bn that was raised in April a year earlier.
Year to date the picture was also poor with the 37 issues so far this year raising a total of $11.8bn against the $16.9bn that was raised in the first four months of last year from a total of 35 bonds.
As usual the biggest issues were from Russian companies which raised a total of $9.3bn from five issues, but that is well ahead of the mere $185mn that was raised last April, the month that the US released its punitive April 6 round of sanctions targeting some of Russia’s top businesses.
The shock of last year’s sanctions means that year to date Russia has raised almost the same amount as over the first four months of last year when companies issued a total of $9.4bn.
April was also down on a big month in March when a total of $6.2bn was issued, but half of that was due to a highly successful sovereign issue that raised $3bn and €750mn on the international markets.
Amongst the more interesting issues in April from Eastern Europe was a $500mn bond from the Development Bank of Belarus, a relatively new entity that has been tasked with modernising the Belarusian economy and has made some real inroads already.
CEE Top issues in Apr 2019 |
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Issue |
Currency |
Volume (m.) |
Lead Managers |
Slovakia, 0.75% 9apr2030, EUR |
EUR |
1 000 |
Natixis, Societe Generale, Vseobecna uverova banka and others |
CPI Property Group, 4.875% perp., EUR |
EUR |
550 |
Bank of China, Credit Suisse, Goldman Sachs and others |
Zavarovalnica Triglav D.D., 4.5% 22oct2049, EUR |
EUR |
50 |
Erste Group |
CIS Top issues in Apr 2019 |
|||
Issue |
Currency |
Volume (m.) |
Lead Managers |
ALROSA, 4.65% 9apr2024, USD |
USD |
500 |
Gazprombank, JP Morgan, VTB Capital |
STLC, 5.95% 17apr2025, USD |
USD |
500 |
Gazprombank, VTB Capital, Sovcombank, Renaissance Capital and others |
Development Bank of Belarus, 6.75% 2may2024, USD |
USD |
500 |
Citigroup, RBI Group |
Aragvi Holding International, 12% 9apr2024, USD |
USD |
300 |
Citigroup, UBS, VTB Capital, Renaissance Capital |
Top issues in Apr 2019 |
|||
Issue |
Currency |
Volume (m.) |
Lead Managers |
ALROSA, 4.65% 9apr2024, USD |
USD |
500 |
Gazprombank, JP Morgan, VTB Capital |
STLC, 5.95% 17apr2025, USD |
USD |
500 |
Gazprombank, VTB Capital, Sovcombank, Renaissance Capital and others |
BrokerCreditService, 6% 30jun2024, USD (41) |
USD |
10 |
BCS |