Nafta Polska plans new bond issue

Oil industry privatization agency Nafta Polska is planning a new bond issue. The capital raised in the first commercial bond issue since 1997, will be used to partially cover the zł. 2.5 billion worth of debts owed by state-owned fertilizer and heavy chemicals producers. Under the contingency plans to be presented to the Sejm tomorrow, the first stage, restructuring of the finances of the debt-ridden chemicals producers, would cost zł. 1.2 billion and would be the sole responsibility of Nafta Polska. The value of the issue remains unknown, but sources speak of several hundred million złotys. The restructuring of the ailing chemicals sector would also be financed by the Industrial Development Agency and the EU. A potential buyer of the planned issue could be the Polish Oil and Gas Company (PGNiG), who would take over the papers in return for the sector's debts. Other possible buyers that have been suggested include The Bank for Reconstruction and Development and the European Investment Bank. (Parkiet, p. 1) J.K