High hopes for CEE bond deals

 High hopes for CEE bond deals

Published: January 7, 2014

Raiffeisen Research analyst highlights his picks for corporate DCM activity in the coming months, including Promsvyazbank and International Bank of Azerbaijan.

Following another record year in the debt capital markets of Central and Eastern Europe, the Middle East and Africa (CEEMEA), analysts hope corporate issuers in emerging Europe will help to provide a busy start to 2014.

In a research note published on Tuesday January 7, Martin Kutny, an analyst at Raiffeisen Research, part of Austria’s Raiffeisen Bank International, said he expects that Central and Eastern Europe’s “booming primary market activity may continue well into 2014 subject to no major disruptions on the secondary market”.

Kutny highlights several regional companies that he says could tap the markets, including Russia’s Promsvyazbank and Tinkoff Credit Systems, which he expects to issue subordinated bonds; Russia’s Vnesheconombank, which may sell a eurobond; the International Bank of Azerbaijan, expected to make its debut benchmark deal; and Ukrzaliznitsya, the state administration of the Ukrainian railways.

International issuances from CEEMEA issuers totalled US$190.7bn in 2013 – Deutsche Bank topped research firm Dealogic’s league tables, handling 80 deals worth some US$21.6bn.