Ministry of Finance is pleased to announce that all outstanding Brady Bonds will be called for redemption on the interest payment date falling on October 27th , 2012 with the settlement date on October 29th, 2012.
The issuer has the right to repurchase all or part of the outstanding Brady Bonds at a par value on the each interest payment date (two times per year).
The Brady Bonds will be repurchased in the total nominal amount of USD 297,008 thousand:
- The Republic of Poland Collateralized RSTA Bonds in the nominal value of USD 118,489 thousand,
- The Republic of Poland Collateralized PAR Bonds in the nominal value of USD 178,519 thousand.
As a result of such operation the notional amount of the remaining Brady Bonds will decline to zero.
The Polish Brady Bonds were issued subject to the agreement with London Club banks. The bonds were issued on October 27th, 1994 and included six various securities with specific terms. Total amount of issuance reached USD 8.0 billion.
In 1995 Ministry of Finance started the early repurchase of the Brady Bonds. As a result of the conducted operations, the notional amount of the remaining Brady Bonds declined to USD 297,008 thousand.
The current interest rate of RSTA Bonds amounts to 4.75% and of PAR Bonds 4.0%. According to the issuance conditions since 2015 the interest rate for both instruments would have risen to 5.0%.