LONDON, June 25 (Reuters) - Emerging sovereign borrowers,
particularly those with higher ratings have turned to Eurobond
markets for funds in recent months, encouraged by relatively
lower risk premiums charged by investors.
Secondary market debt spreads for emerging borrowers to U.S.
Treasuries swelled to around 900 basis points, their widest
levels in nearly six years, after the collapse of Wall Street
giant Lehman Brothers last September. They had fallen back to
around 450 basis points above Treasuries <11EMJ> on Thursday.
Central European borrowers Poland and Hungary are holding
investor roadshows, and Macedonia says it is planning a
euro-denominated bond.
However, there have been some hiccups. Russia's
state-controlled bank VTB <VTBR.MM> put plans for a dollar bond
on hold but this week mandated banks for a Swiss franc issue.
Following is a summary of proposed international bonds from
sovereign and quasi-sovereign borrowers in central and eastern
Europe and the Middle East, with indications of existing
Eurobond yields where applicable.
(OFFICIAL) indicates confirmed by borrower.
----------------- CENTRAL, EASTERN EUROPE ------------------
----------------------- CZECH REPUBLIC ---------------------
CZECH REPUBLIC - The Czech Republic is not planning another
euro-denominated bond before the end of the third quarter but
cannot rule out a sale this year, Finance Minister Eduard Janota
said on May 11. (OFFICIAL)
The Czechs sold 1.5 billion euros worth of 5-1/2 year
Eurobonds at the end of April.
The Czech Republic's euro-denominated Eurobond due 2018
<CZ036880007=RRPS> is trading at a yield of around 5.334
percent, compared with 4.697 percent in early Sept 2008.
------------------------- HUNGARY ----------------------------
HUNGARY - Hungary has mandated BNP Paribas, Citigroup and
ING to arrange meetings with fixed income investors in the near
future, to prepare the ground for a possible international bond
offer, finance minister Peter Oszko said on June 25. (OFFICIAL)
Hungary's 1 billion euro 2018 Eurobond <HU016166731=> is
yielding 6.425 percent, compared with 5.119 percent in early
Sept 2008.
------------------------ MACEDONIA -----------------------------
MACEDONIA - Macedonia could issue a Eurobond totalling
200-300 million euros in a matter of days and is likely to
choose a four-year maturity, the country's finance minister told
Reuters on June 22. (OFFICIAL)
-------------------------- POLAND ----------------------------
POLAND - Poland is holding investor roadshows in Europe
between June 22 and June 30, an official at one of the arranging
banks -- Barclays, Citi and HSBC -- said.
Poland's deputy finance minister told Reuters in April that
Poland was planning a June roadshow for a five- or 10-year bond
totalling at least $1 billion. (OFFICIAL)
Poland's euro-denominated bond due 2012 is trading at a
yield of 4.207 percent <PL014423800=RRPS>, compared with 4.364
percent in early Sept 2008.
-------------------------- ROMANIA ---------------------------
ROMANIA - Romania may issue a euro-denominated Eurobond as
early as September, a finance ministry official said on June 5.
Officials have said a Eurobond might have a maturity of 5 to 10
years and total at least 500 million euros. (OFFICIAL)
Romania's 750 million euro 2018 Eurobond is yielding 7.769
percent <RO037116360=RRPS>, compared with 6.019 percent in early
Sept.
---------------------- RUSSIA -----------------------------
RUSSIA - Russia will issue Eurobonds of up to $10 billion in
2010 and could issue a similar amount in 2011, Russia's deputy
finance minister said on May 20. (OFFICIAL)
Russia's benchmark 2030 bond <RUSGLB30=RR> is yielding 7.990
percent, compared with 5.757 percent in early Sept.
GAZPROM NEFT - Russia's Gazprom Neft <SIBN.MM>, the oil arm
of gas export monopoly Gazprom <GAZP.MM>, may issue up to $1
billion in bonds, the firm said on June 22. (OFFICIAL)
RUSSIAN AGRICULTURAL BANK - Russian state-owned farm
industry lender Russian Agricultural Bank (Rosselkhozbank) said
on June 8 it may issue another Eurobond of up to $1 billion this
year, after it issued a $1 billion deal earlier in the month.
(OFFICIAL)
RZhD - Russian state railway RZhD said on Nov. 11 it would
not go ahead with plans for a Eurobond of up to $4 billion until
the second half of 2009. (OFFICIAL)
VTB - Russia's VTB bank has mandated BNP Paribas and VTB
Capital for a proposed debut Swiss franc bond, IFR, a Thomson
Reuters online news and market analysis service, said on June
25.
VTB earlier this month decided against issuing a
dollar-denominated Eurobond following a non-deal roadshow.
VTB's $750 million Eurobond due 2015 <RU021192201=RRPS> is
trading at a yield of 12.701 percent, compared with 7.166
percent in early Sept.
------------------------ MIDDLE EAST -----------------------
------------------------ ISRAEL ----------------------------
ISRAEL - Israel is still considering a euro-denominated
benchmark issue this year, a senior finance ministry official
said on March 19, after Israel sold $1.5 billion of 10-year
bonds. (OFFICIAL)
------------------------- LEBANON ---------------------------
LEBANON - Lebanon may issue a Eurobond in 2009 but nothing
is planned yet, the country's finance minister said on March 17.
(OFFICIAL)
Lebanon completed a debt swap in March for around $2.3
billion of foreign currency debt maturing this year.
(Compiled by Carolyn Cohn; editing by Patrick Graham)
