PGNiG considers redeeming eurobonds to reduce debts

Natural gas monopoly Polish Oil and Gas (PGNiG) is considering early redemption of part of its outstanding eurobonds as it fights to lower costs and restructure its debt, its financial chief Jerzy Staniewski, said yesterday. However the company, which has already redeemed euro 100 million worth of its original euro 800 million issue, would time the decision against the bonds' price. The bonds, which mature on October 30, 2006 and carry a 6.75% coupon, are currently trading nearly 5% above their nominal value. Market sources said the second redemption was most likely to also be called for euro 100 million nominal bond value, but Staniewski would neither confirm the value nor comment on the most likely timing of any transaction. He also said PGNiG was closing a deal to diversify its debt portfolio away from hard currencies, but gave no details. (Reuters) J.K.