PGNiG announces bond issue amid growing optimism

State-owned gas monopoly PGNiG is planning a five-year eurobond issue worth at least euro 450 million, with the aim of reducing the high cost of servicing its debts. The announcement comes at a time when the company is anticipating an improved performance over the coming months, having made losses amounting to zl.415.5 million last year. According to president Andrzej Lipko, "PGNiG is expecting a net profit next year. We plan that our net loss this year will come to zl.189 million, but next year the company is looking forward to a net profit of zl.391 million." Details of the eurobond issue, which is planned for the autumn, will be announced later by the Treasury Ministry. PGNiG, which supplies over 60% of the gas consumed in Poland, is planning to increase its gas sales by 5% annually from 2001 to 2003. Support for PGNiG's more positive outlook has come in the form of a Triple 'B' corporate credit rating from Standard & Poor. The rating is based on promising forecasts for growth in gas consumption in Poland, although the optimism is tempered by concerns about the heavy reliance on imports, which come mainly from Russia. (Rzeczpospolita, p.B3, Reuters) M.T.