PKP to go ahead with reduced bond issue this year

The board of Polish State Railways (PKP) will today announce whether it has decided to go ahead with the first stage of bidding in the selection of an agent for the company's bond issue. PKP has already decided to reduce the planned bond issue, from zl.1.3 billion to zl.500 million, making it more likely to go ahead this year. However, the sale will now be conducted only on the domestic market. The original restructuring plan had envisaged the sale of zl.800 million worth of bonds on the Euroland markets, with some of the biggest international financial institutions expected to participate. PKP is very much in need of a fresh capital injection. The company already has debts amounting to zl.700 million, and is seeking a further zl.300 million in loans, with four banking consortia expressing an interest. (Puls Biznesu, p. 6) P.W.