Pricing of EUR bond - reopen

The Ministry of Finance priced a reopening of 6-year Euro denominated benchmark bond maturing on 15 January 2019. The nominal amount of transaction reached EUR 700 million with the orderbook approximately EUR 1 bn. As a result the aggregate nominal amount of the bond maturing on 15 January 2019 is EUR 1.7 bn. The bonds were priced 43 basis points over mid-swap rate which is 22 bp below the original tranche priced in January 2013. The received pricing is the tightest one not only for euro denominated bonds but for all international bonds priced by Poland since the collapse of Lehman Brothers.

The reopening yields amount to 1.759 percent., with the annual coupon 1.625 percent.

The bonds were placed mainly among European investors: Germany (29%), Poland (26%), Austria (12%), France (7%), United Kingdom (6%), Belgium (6%), Switzerland (2%). The share of Asian investors amounted 7%.

In terms of investor type, "banks" accounts dominated the orderbook - 62 percent. Asset managers accounting for 19 percent, pension funds and insurance companies for 13 percent, and central banks for 4 percent.

The issue was executed under Republic of Poland's Euro Medium Term Note (EMTN) Programme.

The lead managers on the transaction are BNP Paribas, Deutsche Bank, HSBC and UniCredit Bank.