PKP shareholders approve zl.1.5 billion bond issue

Shareholders of Polish State Railways (PKP) have approved a plan to issue zl.1.5 billion worth of 7-year bonds. The issue, to be conducted in two stages, will provide funds for PKP to pay back zl.1.394 billion of its short-term debt. An announcement is expected as early as next week on a tender to find an agent to handle the bond issue. In another development, Puls Biznesu reports that PKP is close to reaching an agreement with Bombardier, the Canadian owner of Poznan-based Pafawag locomotive works, on a deal to purchase 18 engines costing zl.278 million to zl.300 million. An additional 24 locomotives for leasing to PKP will be purchased from Bombardier by tanker operator Dyrekcja Eksploatacji Cystern (DEC). (Rzeczpospolita, p. B4; Puls Biznesu, p. 9) M.K.