Bloomberg News

Poland Sells the Most Bonds in Swiss Francs in Five Years

April 17, 2012

Poland sold a total of 825 million Swiss francs ($900 million) of bonds for its biggest transaction in the currency in almost five years.

The government sold 375 million francs of floating-rate notes due August 2015 at a yield of 125 basis points over the three-month franc London interbank offered rate, a banker with knowledge of the deal said. Poland also sold 450 million francs of fixed-rate bonds due in May 2018 at 170 basis points over mid-swaps, according a banker, who did not want to be named as the information is not public.

This price would give yields of about 1.36 percent for the 2015 notes and 2.31 percent for the 2018 bond, according to data compiled by Bloomberg.

The deal was managed by Credit Suisse Group AG (CSGN) and Deutsche Bank AG, the Finance Ministry said on its website today. The government planned to sell minimum of 200 million francs of 2018 bonds and 250 million francs of three-year notes, according to bankers. The total value of the offering was the biggest since May 2007 when Poland raised 1 billion francs, according to data compiled by Bloomberg.

Poland and current euro member Slovakia have been the only emerging-market governments to sell debt in francs since 2008, when Hungary raised 150 million francs from a 2013 bond. Developing nations have raised 8.3 billion francs in bonds since 1999, according to data compiled by Bloomberg. Poland has accounted for 6 billion francs of that total.

Poland sold 350 million of franc bonds due in 2016 in February last year. The bonds fell today, pushing the yield up three basis points to 1.89 percent at 4:15 p.m. in Warsaw.

The yield fell to 1.8 percent on April 10, the lowest since they were sold and down from as high as 3.18 percent in April last year.

To contact the reporters on this story: Jason Webb in London at jwebb25@bloomberg.net; Piotr Skolimowski in Warsaw at pskolimowski@bloomberg.net

To contact the editor responsible for this story: Ash Kumar at akumar314@bloomberg.net


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