- Sovereign Sells EU1b of 10-year and EU750m of 20-year bonds
- Sale is part of Poland's ambitious 1Q bond-sale agenda
Poland became the first developing nation to tap the Eurobond market this year, raising 1.75 billion euros ($1.9 billion) in a sale of 10- and 20-year notes.
The government priced bonds due January 2026 at 65 basis points above midswaps and securities maturing in January 2036 at 100 basis points, according to terms of the deal provided by a person familiar with the matter, who was not authorized to speak publicly. The sale paves the way for other issuers from the region, according to Juraj Kotian, the head of Central and Eastern Europe macro and fixed-income research at Erste Group in Vienna.
“It was a pretty wise decision to come out early,” Kotian said by phone. “Hungary is next in the pipeline, coming to the international market after two years of absence,” followed by Romania, he said.
Poland went ahead with its bond sale even as a Chinese stock rout dents investor confidence in developing-nation assets. The sovereign paid 1.592 percent to raise 1 billion euros in 10-year bonds in September. The yield on those securities has fallen 23 basis points since the issue.
The latest offering is part of a plan to raise as much as 25 billion zloty ($6.2 billion) of foreign-denominated bonds in the first quarter, which accompanies the country’s program to boost local-currency bond sales by 40 percent.
Citigroup Inc., HSBC Holdings Plc, ING Groep NV, Societe Generale SA and UniCredit SpA managed the sale, Piotr Marczak, the head of the Finance Ministry’s public-debt department, said by e-mail.