Citibank's big bucks bonds

Each bond will cost $100,000 (zł.322,580) with an annual interest rate of 2.9 percent. Sławomir Sikora, the president of Bank Handlowy (Citibank's sister company), said: "I hope that Polish retirement funds will be interested in these bonds." The bonds have been given an AA rating by Standard & Poors. This rating is higher than Poland's, which Sikora hopes will attract investors. "The investors are receiving a financial instrument with a stable income, such as a bond, and with shareholder rights," he added.

The sale comes after Citibank promised the Commission of Banking Supervision that it would reduce its stake in BH. Citibank currently has a 90 percent stake in the bank.

The bonds can be exchanged at anytime for BH shares. If everyone who acquires bonds decides to exchange them for shares, Citibank's stake in Bank Handlowy will drop to 75 percent.