Page 57 - bne_Magazine_September_2017

bne September 2017 New Europe in Numbers I 57
CEE monthly bond wrap: summer slowdown is here
bne IntelliNews
The summer slowdown is here with bond issue volumes dropping off across the Central and Eastern Europe (CEE) region but still way ahead of last year’s results.
In Central Europe a total of $1.5bn
new bonds were issued by only three entities: the Lithuanian power com- pany Lietuvos Energija with a €300mn bond and Turkish banks Odea Bank
and Poland’s PKO Bank with $300mn and €750mn respectively. However, combined this was still about $500mn more than was issued a year ago in the same month, according to Cbonds data.
Bond issues in the Commonwealth
of Independent States (CIS) also fell month on month from $7.25bn in June, which was abnormally high, to $1.9bn in July, which was on a par with the same month a year earlier ($1.85bn).
Russia continues to dominate the bond issues in the CIS with five out of the total six issues carried out by Russian entities. In all, a total of $1.9bn bonds issued by CIS companies of which $1.2bn were issued by Russian entities. Russian companies have returned to grace to an extent and tapping inter- national capital markets for longer and cheaper money. The rising number of bond issues from Russian since 2016 closely mirrors the fall in corporate lending over the same period.
Russia’s leading commercial bank Promsvyazbank was the biggest is- suer by far with a $500mn perpetual bond with yield of 8.75%. But inter- estingly there was two issues by new kid on the Russian financial block, BCS, a young brokerage that is grow- ing fast, of $4.5mn and $10mn with yields of 5.5% and 4.75% maturing
in 2022 and 2023 respectively.
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CEE: new bond issues $mn
CIS: Volume of new issues, $mn
Russia: Volume of new issues, $mn
Source: CBonds