PGNiG to issue zl.1.7 billion bonds on foreign markets

National gas monopoly Polskie Gornictwo Naftowe i Gazownictwo (PGNiG) plans to issue zl.1.7 billion worth of bonds on European and U.S. markets, aimed at restructuring its zl.6 billion debts. The company has already asked 10 banks to prepare offers for the issue, but it has yet to obtain permission from the Treasury, its owner, for the transaction. According to analysts, PGNiGs debt restructuring will most likely involve extending payment deadlines, rather than reducing the debt. Andrzej Schoeneich, PGNiGs director for restructuring, believes the company is in good financial condition as it is working on reducing its liabilities and cutting costs through organizational and employment restructuring. He also said that PGNiG has indebtedness ratios similar to those of well-prospering gas companies around the world. Representatives of financial institutions think that interest in PGNiG bonds should be quite high, but the key issue will be the governments strategy for the firm. The Treasury Ministry has pledged to prepare a privatization strategy for the gas sector by the end of January. (Puls Biznesu, p.3) T.J.