The ministry of finance has sold EUR 700mn in a reopening of 6-year benchmark bond denominated in euro maturing on Jan 15 of 2019. It said that the bonds yield 1.759%, which is 43bps over mid-swap rate. It mandated BNP Paribas, Deutsche Bank, HSBC and UniCredit to lead manage the issue.
Vice-minister of finance Wojciech Kowalczyk stressed that this was the lowest spread Poland recorded in all its foreign issues after the 2008 crisis. In January of 2013, when it sold the January 2019 eurobonds for the first time, the spread was 65bps over mid-swap rate.
In January of 2013, Poland sold EUR 1.0bn worth of these bonds, while the orderbook reached EUR 1.9bn. At that time, the ministry stressed that the achieved yield (1.705%) was the lowest in the history of the Polish eurobonds.
Kowalczyk admitted that the government wanted to utilise a strong improvement of market conditions following the recent U.S. financing agreement.
He added that the issue's proceeds will serve to pre-finance the state budget's 2014 borrowing needs and did not rule out further foreign offers in Q4 of 2013, if market conditions are beneficial.
The issue was executed under Republic of Poland's Euro Medium Term Note (EMTN) Programme.
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