Poland Sells 700 Million Euros of Bonds After U.S. Debt Accord

Poland sold euro-denominated bonds after U.S. lawmakers clinched a deal to raise the country’s debt limit, sparking a rally in emerging-market debt.

The European Union’s largest eastern economy priced 700 million euros ($956 million) more of securities first issued in January to yield 1.759 percent or 43 basis points above euro mid-swaps, according to a person familiar with the transaction, who asked not to be identified because the details are private.

The yield on Poland’s March 2023 dollar-denominated debt dropped the most in almost a month after U.S. lawmakers agreed to end a 16-day government shutdown and extend the nation’s borrowing authority until early next year. Poland, which financed 91 percent of this year’s borrowing needs by Sept. 30, planned to sell bonds on international markets in the fourth quarter, Deputy Finance Minister Wojciech Kowalczyk said Aug. 8.

“The timing makes sense after the U.S. debt issue is resolved,” Ronald Schneider, who helps manage 800 million euros in assets at Raiffeisen Kapitalanlage GmbH in Vienna, said in e-mailed comments today.

The yield on the 2023 dollar bonds fell seven basis points, or or 0.07 percentage point, to 3.895 percent at 6:20 p.m. in Warsaw. The rate on the January 2019 euro notes sold today rose seven basis points to 1.75 percent, after falling to 1.65 percent on Oct. 14, the lowest since July 30.

Poland, rated A2 by Moody’s Investors Service and A- by Standard & Poor’s as well as Fitch Ratings, mandated BNP Paribas SA, Deutsche Bank AG, HSBC Holdings Plc and UniCredit SpA for the sale, the Finance Ministry said in a statement.

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