Poland sells USD 2bn worth of 10-year benchmark USD bonds

By bne IntelliNews January 17, 2014

The ministry of finance has priced a 10-year USD denominated benchmark bond with a maturity on Jan 22 of 2024. The nominal amount of the issue is USD 2bn, priced to yield 125bps above the equivalent U.S. Treasuries. The issue was priced with a yield of 4.099%. The coupon has been set at 4.00%.
Vice-minister of finance Wojciech Kowalczyk stressed that Poland achieved the lowest spread to U.S. Treasuries since the collapse of Lehman Brothers.
After this issue, Poland has finances around 65% of this year's foreign currency borrowing needs, but taking into account also loans from international financial institutions - nearly 90%. This means, he argued, that the ministry should not carry out any EUR or USD denominated public issues later this year and will focus on smaller projects so as to reach new investors. However, earlier, he did not rule out the ministry's entry into this market at the end of the year, so as to pre-finance part of the 2015 state budget's borrowing needs.
The ministry earlier said it mandated Barclays, Citi and Goldman Sachs to lead manage the transaction.
Last week, Poland sold benchmark 10-year eurobonds worth of EUR 2.0bn, with reach yield of 3.032%, which is the lowest in terms of 10-year EUR bonds. After the issue, the ministry estimated the financing of the state borrowing needs at 35%. Later, it sold around PLN 6bn (EUR 1.4bn) of 5- and 10-year Treasury bonds on the domestic market.

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