PKP Intercity's bond issue looks like it may go off the rails

"We plan to issue three year bonds and we want to collect zł.50 million in one or several tranches. If all goes well the issue will take place in the autumn," declared Jacek Prześluga, the president of PKP Intercity. The company wants to allocate zł.100 million for the modernization and purchase of trains, but so far it has gathered only zł.50 million and needs at least another zł.20 million to launch its investment projects. Banks are unwilling to offer loans to the operator, since the company closed last year with a loss exceeding zł.47 million. Nevertheless, Prześluga argues that the carrier has good perspectives for growth, "The [company's] results have been improving systematically for several months. In Q1 2004 we recorded a loss of zł.27 million while in Q1 this year it amounted to just zł.7.5 million." However, analysts remain skeptical about the chances for the success of the issue. "Not many companies will buy the bonds without government guarantee or other forms of insurance," stated Grzegorz Leszczyński from Internetowy DM. (Puls Biznesu, p. 8) E.B.