CIS+ Banks Expected to Maintain High Eurobond Issuance in 2025 – Fitch
CIS+ Eurobond placements surge to $3.5 billion in 2024
In a recent report from Fitch Ratings, it has been revealed that CIS+ Eurobond bank placements have significantly increased to $3.5 billion in 2024. This marks a substantial rise from the previous peak of $1.3 billion in 2020, showcasing the region’s growing presence in the international financial market.
According to Fitch Ratings, the Eurobond debt issuance for CIS+ banks in 2025 is expected to approach record levels seen in 2024. This growth is driven by refinancing needs, favorable economic conditions, and positive investor sentiment. Banks in Uzbekistan and Kazakhstan are projected to lead in terms of volume, with several more placements anticipated to follow.
Despite only one placement so far in 2025, more Eurobond issuances are expected due to refinancing needs totaling $1.8 billion in 2025-2026. The strong economic growth in the region is expected to support loan growth and bank performance, further propelling issuance levels. CIS+ banks have been benefiting from positive investor sentiment towards emerging markets, with geopolitical influences in the CIS region remaining a key sensitivity to forecasts.
The report also highlights the pent-up demand following a period of limited issuance and the exclusion of Russian issuers from international markets, which may continue to drive momentum for CIS+ banks. Uzbek banks are expected to issue Eurobond debt to fund loan growth, given limited long-term funding in the domestic market.
Kazakhstan’s Development Bank, with proven access to foreign funding, issued $1.4 billion equivalent of Eurobonds in 2024 to refinance debt maturing in the coming years. Other Kazakh banks may also explore issuing Eurobonds due to strong loan growth prospects and an increase in the banking sector’s loans/deposits ratio.
However, banks in Armenia, Azerbaijan, and Georgia are less likely to issue Eurobond debt this year. Georgian issuers may face challenging investor sentiment due to political risks. Azerbaijani and Armenian banks, on the other hand, have comfortable liquidity positions and limited incentive to issue Eurobonds at the moment.
Overall, the surge in CIS+ Eurobond placements reflects the region’s growing presence in the international financial market and sets a positive tone for future economic growth and development.
