Pekao, BZ WBK on verge of launching major bond issue

One of the largest banks, Pekao S.A., intends to issue bonds whose value may reach even zl. 2 billion. This would represent over 30% of the bank's capital. According to the bank's spokesman Sebastian Luczak, the issue is aimed at helping Pekao expand its offer of financial services. "I cannot reveal the details, as we first have to present them to the Securities and Stock Exchange Commission (KPWiG) for acceptance. "All I can say is that the interest rate will be very attractive, especially as the profit will be exempt from tax," he added. The issue will be targeted exclusively at individual investors. A similar but smaller (zl. 600 million) bond issue will be launched by Bank Zachodni WBK in November. KPWiG has already granted permission for BZ WBK to sell its bonds. The total value of offers proposed by both banks is similar to a three-month bond issue by Treasury Ministry. (Gazeta Wyborcza, Oct. 5-6, p. 32) A.Z.