Poland sold a total of €1.25bn of euro-denominated Eurobonds maturing in October 2046 and October 2028 on October 18. In an unexpected move - as Warsaw tends to tap markets for Eurobonds early in the year - the sovereign rushed to raise capital before the US carries out a rate hike that is expected by the turn of the year.
Poland set the final guidance on the €750mn issue of 12-year debt at 50bp over mid-swaps. The guidance on the €500mn issue of the 30-year papers - the first such issue by the sovereign - came in at 120bp over mid-swaps, Reuters reports. The combined order books were over €1.75bn, according to sources.
Banco Santander, Barclays, BNP Paribas, Citigroup, and Commerzbank orgainsed the sale, the ministry had said in an earlier statement announcing the deal was coming.
"We want to take advantage of the good climate on the market [to] pre-finance next year's borrowing needs. We want to avoid potential uncertainty related to the development of the situation in the United States," deputy Finance Minister Piotr Nowak told Reuters.
Poland sold €750mn worth of a 20-year Eurobond in mid-April, doubling the size of the outstanding issue. The deal saw Warsaw pay a premium to get the bonds away, as yields remain elevated due to the political uncertainty stalking the country.
Demand for the April issue reached €1.1bn, with the papers – maturing in January 2036 - priced at 125bp over mid-swaps and achieving a yield of 2.275%. Warsaw had sold the first €750mn tranche on January 11 at 100bp over mid-swaps and a yield of 2.471%.
The Polish government is at odds with the EU and ratings agencies over its bid to rapidly consolidate power over institutions. Analysts also worry that fiscal discipline is set to slip.
The Monetary Council of the Magyar Nemzeti Bank announced new monetary policy measures at its November 21st meeting, while keeping the base rate and the overnight rates unchanged, as expected. ... more
The International Monetary Fund (IMF) has welcomed Uzbekistan’s ongoing efforts “to adopt a more effective macroeconomic stabilisation framework and to improve the economy’s ... more
The Mongolia Stock Exchange (MSE) Top 20 Index is approximately up by 74% year-to-date, marking the largest gain among all benchmarks tracked by Bloomberg. ... ... more