Ministry of Finance issuing 7-year CHF t-bonds

The Ministry of Finance is selling PLN 500 million worth of CHF-denominated 7-year treasury bonds, said a Bloomberg release, claiming to have overheard from market sources. Treasury bond prices are at a record low currently. The Polish t-bonds on offer are to mature in April of 2021. The unspecified Bloomberg source has also claimed that the spread on the bonds amounts to 40bps above the Swiss mid-swap. Not long ago, Dorota Podedworna-Tarnowska, the vice-minister of finance has been in talks with Swiss investors and a decision on the issuing of a small amount of bonds was to be made shortly, writes forsal.pl. Although, Poland does not want to take on any more foreign debt, this batch of bonds could help with the roll-over of maturing bonds. In March, the ministry redeemed bonds worth CHF 625 million and in September another CHF 750 million was paid to investors. Due to the low cost of debt, the Ministry of Finance is forecasting a debt-servicing cost of PLN 32.35 billion in 2015, compared with PLN 36.17 billion this year.