CEE & Turkey
With a weakened currency and political volatility riding high, some analysts are concerned about the growing likelihood of a hard landing in Turkey – ever more with the backdrop being a strengthening dollar and US monetary policy normalisation. We speak with Albaraka Turk Chief Treasury and Investment Officer Malek Temsah about the country’s economy and the banking sector.
Just a few years ago, barely any debt capital markets investors would have paid much attention to regions like Central Asia and the CIS. Yet with overwhelming demand for sovereign notes issued by the likes of Belarus and Tajikistan, regular issues from Kazakhstan and a highly anticipated debut Eurobond from Uzbekistan, the region is putting itself on the EM fixed income map.
Albaraka Turk extended its reputation as a pioneer in the sukuk market last month, issuing the country’s first Basel III-compliant Additional Tier 1 capital notes – in a Sharia-compliant privately placed, publicly listed format, no less.
After a traumatic few years catalysed by the annexation of Crimea and the ensuing civil conflict with its easternmost regions, Ukraine has developed a certain degree of flexibility in managing a series of shocks encountered since. But a lack of progress on crucial reforms, political mismanagement, and consistent lack of access to credit for key sectors like agriculture threaten the progress achieved so far.
Despite a conspicuous rise in tensions between Turkey and some of its closest neighbours and allies, the country finished 2017 as one of the fastest growing economies in the world – thanks in part to an unprecedented fiscal stimulus that helped among other things stoke the continued deepening of the capital markets. Against that backdrop, a number of leading issuers and borrowers once again set new benchmarks in the credit markets for 2018, securing a number of ‘firsts’ while making the market more robust.
Brown Brothers Harriman: produced the following ratings model to assess relative sovereign risk in Frontier Markets. A country’s score directly reflects its creditworthiness and underlying ability to service its external debt obligations.
Petropavlovsk sold USD500mn of fresh debt –– PSB gets downgraded – Rosneft’s shares take a hit due to Venezuelan crisis – Venezuela and Russia agree on debt restructuring –ABLV placed USD40mn of unsubordinated notes – Belarus to issue USD600mn next year – The government to support Turkey’s export sector
Rosselkhozbank to issue perpetual bonds – Petropavlovsk preparing its bond market debut –Croatia to hold a repo auction – Moldova cuts interest rates – Eurotorg issues Belarus’ first corporate bond – Greece to tap the international markets again – BOE hikes rates for first time since August 2016 – Relations between Turkey and the EU continue to deteriorate
It has been a difficult 12 months for the Turkish economy, but green shoots are finally starting to emerge and international lenders are refocusing on the next wave of funding opportunities in the country. We speak with Hulusi Horozoğlu, Assistant General Manager, Head of Wholesale Banking at HSBC Turkey, one of the country’s leading investment banks, about the dynamics of the local market, and where – against a broader global backdrop of low yields – the next wave of international liquidity is likely to land in Turkey.
Bonds&Loans speaks with Hakan Eryilmaz, Deputy CEO of Türkiye Halk Bankası A.Ş. (Halkbank), about Turkey’s ambitious growth targets, the lending environment, and making the country’s capital markets more accessible to corporate borrowers.
- Russia, CIS, Europe & Turkey Credit Markets Brief: 05 October- 19 October
- Russia, CIS, Europe & Turkey Credit Markets Brief: 21 September- 5 October
- Russia, CIS, Europe & Turkey Credit Markets Brief: 7 September – 21 September
- Emerging Market Credit Daily Roundup: 7 September, 2017
- Russia, CIS, Europe & Turkey Credit Markets Brief: 24 August - 07 September
18 Oct 2018