The Ministry of Finance priced on March 30th, 2015 a 12-year EUR denominated benchmark bond with a maturity on May 10th, 2027. The nominal amount of the issue is EUR 1 bn, with orderbook in excess of EUR 1.7 bn.
The bonds were priced 35 basis points over mid-swap rate. The reoffer yield of 1.022% is the lowest ever achieved by Poland on the EUR market. Annual coupon has been set at 0.875%.
The structure of buyers is well diversified in terms of both, geography and investor type.
The bonds were placed mainly among European investors, including: Germany (21%), Poland (14%), France (11%), United Kingdom (8%), Italy (6%), Scandinavia (5%), Switzerland (4%), Austria (4%) and other European countries (6%). The share of investors from Asia and Middle East amounted for 18% and 3% respectively.
In terms of investor type, long-term investors dominated the orderbook. The share of central banks and sovereign wealth funds was 22%, the highest ever in case of long-term bonds issuances. Asset managers amounted for 44% of the allocated amount, followed by Pension Funds and Insurance Companies (21%). Banks and Private Banks had a final share of 13%.
The issue was executed under Republic of Poland's Euro Medium Term Note (EMTN) Programme.
The lead managers on the transaction are Banco Santander S.A., Barclays Bank PLC, Citigroup Global and Société Générale.