Credit Crunch Risks Blackouts as Projects on Hold: Poland Credit
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Poland’s push to avoid electricity blackouts by developing more than $5 billion of new power plants is at risk as the companies chosen to build them struggle to secure financing after a record bankruptcy.
The cost for builders to sell debt has doubled in the last year to at least 800 basis points above the Warsaw interbank offered rate, according to money manager KBC TFI SA in Warsaw. That corresponded to a yield of 10.7 percent yesterday, compared with 2.67 percent on 2018 Eurobonds issued by Ferrovial SA, the Spanish owner of Poland’s biggest builder Budimex SA, according to data compiled by Bloomberg.