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bne December 2017 The Month That Was I 9
Finance
Eastern Europe
Russian state-owned gas monopolist Gazprom floated a €750mn Eurobond with a coupon rate of 2.25% per annum – the lowest coupon rate for Russian issuers in any currency in the last seven years.
Russia's largest lender state-con- trolled Sberbank broke its ordinary share price record of RUB200 on November 7 on Moscow Exchange, cementing its status as the country's most valuable stock in terms of capi- talisation of RUB4.5 trillion ($76bn).
flagship but troubled “Garden Ring” bank Promsvyazbank (PSB).
Sberbank has sold its Ukrainian operation, the Lviv-headquartered middle-sized VS Bank, to local banker and politician Sergiy Tigipko.
Central Europe
Estonia is considering an IPO of the Port of Tallinn, the country’s largest port authority. The IPO is expected
to take place in the first half of 2018 with about a third of the port’s shares planned for public trade, while the state will retain the controlling stake in the strategic infrastructure company.
Latvia is one of the countries to be put on the EU’s blacklist of tax havens in a bid to crack down on tax dodging that was highlighted by the Paradise Papers. Around 50 countries may be put on the list.
Southeast Europe
Albania’s first private stock exchange will start working by year-end
after getting the green light from the country’s central bank. Albania and Kosovo are the only countries in the region that do not have stock exchanges.
The shares in the Bulgarian subsidiary of Czech energy giant, CEZ Distribu- tion Bulgaria, jumped on news of a possible sale of the asset. CEZ Distri- bution Bulgaria shares traded 12.72% higher at BGL283.49 ($168.1, €144.9), while CEZ Electro Bulgaria shares traded 5.69% higher at BGL26,000.0, according to data on the local exchanges.
The European Investment Bank
(EIB) and the Croatian Bank for Reconstruction and Development (HBOR) have signed off on a €250mn credit line, the first tranche of a €800mn facility to support small and medium-sized enterprises.
Romania’s Banca Transilvania (BT) submitted permissions to buy up to 100% in Victoriabank. It also asked for permission to buy a 39.2% stake from Cyprus-based Insidown, officially controlled by Russian investor Sergey Lobanov but reportedly under the control of Vlad Plahotniuc.
The net profit of Romanian blue chip BRD-Groupe Societe Generale, the third largest bank in the country, jumped 76% in the first nine months of the year to RON1.06bn (€218.2), the bank said. The result was due
to dynamic commercial activity and improved risk profile.
Fast food Sphera Franchise Group has closed an IPO of a 25% stake in the company, raising RON285mn (€62mn). The group owns the franchises for Romania and Moldova of KFC, Pizza Hut, Pizza Hut Delivery and Taco Bell.
Eurasia
The Mongolia Stock Exchange (MSE) Top 20 Index is the world’s best performer, up 74% YTD. The growth has been driven by commodities
and especially coal company exports to China.
Tajikistan plans to borrow $850mn in 2018-2020 for energy independence and ensuring food security. Central Asia's poorest nation in September raised $500mn from its inaugural international bond this year priced
at 7.125% for a 10-year term.
Turkmenistan cut the daily limit
on ATM cash withdrawals made by Turkmen abroad to a maximum of $50 or its equivalent. In March, the limit was cut to $250 from $1,000, and in October it was slashed to $100. Turkmenistan is in the midst of an economic crisis caused by low gas prices and collapsed gas export deals.
Sberbank beat market estimates with its largest-ever quarterly net profit of RUB224.1bn ($3.7bn), as the state- owned giant saw individual loan growth outpace corporate lending. Profits were up 20.7% on 2016 and 63.6% on 2015.
The share of Russian treasury bonds held by foreign investors reached
an all-time high at the beginning of October according to the central bank. Foreigners’ share in ruble-denominated OFZ was 33.2% as of October 1 and 36.6% in Russian Eurobonds, worth $14.562bn.
Troubled development bank Vnesheconombank (VEB) will have
its state guarantees prolonged by 45 years, deputy Finance Minister Sergei Storchak said. The state budget extended RUB550bnbn ($9.3bn) worth of credit guarantees to VEB as of end of 2016.
Russian bankers Alexei and Dmitri Ananyev have abandoned merger plans and could sell Vozrozhdenie which they own together with their
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