Leading breweries embark on major bond issue

Breweries Browary Polskie Brok-Strzelec and Grupa Żywiec are to issue bonds totalling zł. 560 million. The revenues will be used to clear debts, increase working capital and boosting production capacity. Brok-Strzelec will issue bonds in August and December, as the brewer has a difficulty getting a bank loan due to its debts of zł. 60 million and has to pay back at least half of this sum by the end of the year. "The cost of acquiring capital from the bond issues is comparable with taking a bank loan. It does not exceed 1.5% of its value," assured Adam Brodowski, president of Brok-Strzelec. In the meantime, Grupa Żywiec will issue another tranche of bonds amounting to zł. 500 million, as the current one, amounting to zł. 15 million, matures on September 18. "This is the cheapest way of acquiring capital," assured the company. Nico Nusmeier, president of Żywiec, does not hide the fact that enlarging its plant in Warka will cost about zł. 300 million. (Rzeczpospolita, p. B4) M.M.