Bloomberg News

Poland Selling 10.5-Year Dollar Bonds to Cover 2012 Needs

October 27, 2011

(Updates with comments on pricing in second paragraph, deputy finance minister in fourth.)

Oct. 27 (Bloomberg) -- Poland is selling its first bonds in dollars since June today after European Union leaders agreed on plans to contain the bloc’s sovereign debt crisis.

The country’s new 10.5-year dollar benchmark due in March 2022 may be priced to yield 290 basis points to 300 basis points more than U.S. Treasuries, Deputy Finance Minister Dominik Radziwill said today in a text message. The extra yield may fall to 280 basis points to 285 basis points, said a person familiar with the offering who declined to be identified because terms aren’t set.

Poland last sold bonds in dollars in April and June, when it raised $2 billion from notes due in 2021 in two transactions at a spread over 2021 Treasuries of 179 basis points and 170 basis points, respectively.

“This transaction is a part of pre-financing for next year’s borrowing needs,” Radziwill said in the message. Citigroup Inc., Deutsche Bank AG and HSBC Holdings Plc were picked by the ministry to manage the sale, he said.

Radziwill, who met with investors in Los Angeles last week for a “non-deal roadshow,” said in an interview last month that Poland may sell the equivalent of 1 billion euro in foreign-denominated bonds by the end of this year.

--With assistance from Wojciech Moskwa in Warsaw. Editors: David McQuaid, Linda Shen

Levent Kucukreisoglu in London at

To contact the reporters responsible for this story: Wojciech Moskwa in Warsaw at

To contact the editor responsible for this story: Gavin Serkin at

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