Poland issues euro 750 million eurobonds with high demand and low price

Poland issued euro 750 million worth of 10-year 5.5% eurobonds, with demand considerably outpacing supply. It is unlikely for any more such issues to be conducted this year, said Finance Minister Jaroslaw Bauc. The Finance Ministry initially only planned to issue euro 500 million worth of bonds, but decided to expand it due to high demand and relatively low spread. The pricing of the issue was tighter than that of last year's, even though the latter was smaller. Yield at the time of sale equaled 5.64%, just 0.8 points higher than that of German bonds with the same maturity. Bauc welcomed the pricing, saying that the lower spread in comparison with last year's issue means that the market's evaluation of long-term Polish risk has improved. He added that the additional euro 250 million from the issue will likely be parked in the special foreign-currency account at the National Bank of Poland, used to store cash needed for foreign debt financing. (Rzeczpospolita, p.B1, Reuters) T.J.