CA IB issues bonds in order to buy shares in PZU

In the first week of November CA IB Pre Ipo Investment 1 will offer its three year no interest bonds with a par value of either zł. 100 million or zł. 200 million to pension and investment funds. The money will be spent on buying the shares of the largest domestic insurer PZU. "We presented the project last week and fund managers welcomed it. We will meet with PZU representatives next week," said Marcin Sadlej from CAIB, who is in charge of the project. The bonds will be traded on the CeTO over-the-counter market. The Insurance and Pension Funds Supervisory Commission (KNUiFE) have allowed pension funds to acquire the debenture papers. "The funds will buy the bonds at their own risk. The important things are the credibility of the issuer, a transparent cost structure and the possibility of evaluating the firm in which shares will be indirectly acquired," said Adam Kaudus, a KNUiFE director. According to Parkiet, CAIB has evaluated the price of PZU shares at zł. 134 to zł. 174 per unit. (Parkiet, p. 3) M.M.