It is not normally thought of as one of the banks with a large stronghold on central and eastern Europe. Nevertheless, BNP Paribas still owns relatively large banks in what are, in effect after the 2022 invasion of Ukraine, the region’s two biggest markets in terms of banking: Poland and Turkey.
Moreover, BNPP has a powerful corporate and institutional franchise across the European continent, especially on the financing side. This was very much in evidence in central and eastern Europe in 2023, when it worked on a wide range of deals in different countries and especially in debt capital markets, which is headed in the region by Boris Matiash.
Looking at Poland, BNPP was bookrunner on the sovereign’s biggest international syndication in March, raising $5 billion. It was also bookrunner and joint lead manager on a €750 million green bond for mBank in September, which was soon followed by work on a €700 million debut international bond from Bank Millennium and on an international bond debut from Bank Pekao, raising €1.4 billion in November.
In Turkey, BNPP arranged a $400 million RegS bond for white goods and electronics company Arcelik in September, a deal notable for pricing below the sovereign. In the same month, it was bookrunner on deals for VakifBank and Yapi Kredi, adding to a resurgence in bond issuance from Turkey. In November, BNPP arranged a $400 million bond for airports operator TAV.
In equity capital markets, although internationally relevant issuance was thin outside Romania, BNPP’s Turkish subsidiary helped Astor Enerji – a local manufacturer of power and transformer products – raise TL2.62 billion ($140 million) in an IPO that traded up in the secondary market. It was also bookrunner in a Zl505.5 million ($119.7 million) follow-on share issue by Polish shoe retailer CCC.
BNP Paribas has a powerful corporate and institutional franchise across the European continent, especially on the financing side
BNPP was also present in the smaller economies in the region. It was bookrunner on a green debut for Erste Group-owned Banca Comerciala Romana in Romania and a $650 million debut dollar-denominated bond for OTP Bank in Hungary. It also helped Bulgaria tap the international bond market at the beginning and end of the year.
In Slovenia, meanwhile, as well as work for the sovereign, it was also behind a successful debut green bond by Nova Ljubljanska, helping pave the way for senior preferred issuance by Nova Kreditna Banka Maribor shortly afterwards. It also worked on Croatia’s first bond issue since joining the eurozone on January 1, 2023, and helped Serbia tap the market for $750 million with a small new issue premium.
