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Polish Mobile-Phone Firm Polkomtel Sells Five-Year Debt to Local Investors
Polkomtel SA, Poland’s largest mobile phone operator, sold 1 billion zloty ($319.5 million) of five-year notes to fund operations and possibly refinance debt.
The bonds maturing in September 2015 were priced to yield 170 basis points above the six-month Warsaw Interbank Offered Rate, Bloomberg data showed today. BNP Paribas SA and the Bank Pekao SA unit of UniCredit SpA managed the sale of the zloty- denominated bonds issued from the Polish company’s euro medium term notes program.
“It’s the first such transaction on the Polish market,” Marcin Pulit, a director in Pekao’s fixed-income sales department, said by phone. “The big interest from domestic investors shows that other issuers may follow.”
The bonds will trade on the BondSpot market and will be registered in Poland’s KDPW depository.
Buyers subscribed for “significantly” more bonds than were on sale, with nearly 60 percent of the securities purchased by Polish pension funds, Pulit said.
The company signed a deal with the banks in May for the sale of up to 1 billion euros ($1.27 billion) or its equivalent worth of bonds, according to its website. Aleksandra Gieros- Brzezinska, a spokeswoman for Warsaw-based Polkomtel, had no immediate comment when contacted by Bloomberg today.
Polish companies are stepping up bond sales as banks tighten lending following the global credit crisis, with record issuance this year set to expand the market by as much as 28 percent.
PGE SA and Tauron Polska Energia SA, the country’s biggest power producers, and PKO Bank Polski SA, the largest Polish bank, are among state-owned companies planning to offer a total 11 billion zloty ($3.6 billion) of bonds. That compares with 39 billion zloty of existing corporate bonds, Fitch Ratings data show.
To contact the reporter on this story: Piotr Skolimowski in Warsaw at pskolimowski@bloomberg.net Maciej Martewicz in Warsaw at mmartewicz@bloomberg.net
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