Zloty Rallies on Polish State’s $1.7 Billion PKO Stake Sale
The zloty rebounded from a three-day losing streak as the government’s sale of a $1.7 billion stake in PKO Bank Polski SA (PKO) spurred foreign demand for the currency.
The zloty jumped 0.5 percent to 4.1544 per euro at 11:18 a.m. in Warsaw, the biggest gain among more than 170 currencies tracked by Bloomberg. The yield on 10-year notes fell 14 basis points to 3.80 percent. PKO shares tumbled the most in two months.
The Treasury Ministry and state-owned Bank Gospodarstwa Krajowego are selling 146.9 million shares in Poland’s biggest bank to institutional investors today, according to a term sheet obtained by Bloomberg late yesterday. The stake was valued at 5.19 billion zloty ($1.7 billion) at yesterday’s closing price, making this the largest share offering by a publicly traded company in Poland, data compiled by Bloomberg show.
“We could expect strong interest from foreign investors,” Rafal Benecki, chief economist for Poland at ING Groep NV in Warsaw, said in e-mailed note today. “This is helping the zloty strengthen.”
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