LONDON, July 10 (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 stood
around 450 basis points above Treasuries <11EMJ> on Friday. This
is down from around 900 basis points hit last September after
the collapse of Wall Street giant Lehman Brothers.
Hungary is holding investor roadshows this week in the
Britain, the Netherlands and Germany.
Russia's state-controlled bank VTB <VTBR.MM> has sold a 450
million Swiss franc bond while Hungary this week held roadshows
in London, Frankfurt and Amsterdam.
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----------------
--------------------BELARUS------------------------------
BELARUS - Belarus may issue its $500 million delayed maiden
Eurobond this year and expects the yield to be around 12
percent, the head of major state-controlled bank Belarusbank,
Nadezhda Yermakova said on July 7.
--------------------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 Czech Republic 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. Roadshows
were held this week in Frankfurt, Munich, Amsterdam and London.
The government has said it may issue a euro bond in the
third quarter of 2009.
Hungary's 1 billion euro 2018 Eurobond <HU016166731=> is
yielding 6.425 percent, compared with 5.119 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's second largest bank VTB <VTBR.MM> on
Friday sold a two-year, 450 million Swiss franc Eurobond at a
coupon of 7.5 percent. It had originally planned a $1-$2 billion
7-year dollar bond but changed its plans. Sources said this was
due to the premium demanded by investors.
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.
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 7.958
percent, compared with 5.757 percent in early Sept.
GAZPROM NEFT - Russia's gas export monopoly, Gazprom
<GAZP.MM>, plans to issue a Eurobond in two tranches denominated
in dollars and euros and worth up to $2 billion in total,
banking sources said.
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)
-------------------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 19.
(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 David Stamp)
