Polskie Gornictwo Naftowe i Gazownictwo SA, Poland’s biggest natural-gas company, is selling 500 million euros ($656 million) of bonds due in February 2017, according to three people with knowledge of the matter.
The bonds are said to yield 250 basis points more than the benchmark mid-swap rate, the people said after books closed. Earlier the people said the bonds may be priced at 250 to 260 basis points above mid-swap rate. BNP Paribas SA, Societe Generale SA and UniCredit SpA (UCG) are managing the sale, which is expected to be completed today.
The debt sale is the first foreign bond offering by a Polish utility in more than a decade. Eurobond investors last had a chance to buy into Polish utility bonds in 2001, when state-controlled PGNiG and power plant Elektrownia Turow SA sold debt.
The Warsaw-based company is seeking financing for its 27 billion-zloty ($8.5 billion) investment program through 2015 as it expands into oil and gas exploration as well as electricity generation. PGNiG completed a 2.96 billion-zloty purchase of Vattenfall AB’s Warsaw heat and power plants last month.
Adam Kucza of PGNiG’s investor relations department declined to comment on the sale when contacted by phone. Kucza said earlier today that PGNiG, which held a conference call with investors yesterday, is watching the market and may decide on a bond sale in coming days.