EBRD buys PZU bonds

The European Bank for Reconstruction and Development has announced the purchase of €40 million worth of bonds issued by Poland’s largest insurer PZU. The purchase is part of the Polish insurer’s €500 million debt issue. PZU aims to spend the issue proceeds on increasing its presence in the regional insurance market, mainly through acquisitions of majority and minority stakes in sector companies. “With our investment in PZU’s first Eurobond issue, the EBRD is supporting the company’s strategic acquisitions and investment plans,” said Nick Tesseyman, EBRD managing director for financial institutions. “For the wider insurance market in the region, this expansion will result in increased competition from which customers are expected to benefit.”