Poland's treasury plans another Eurobond this quarter

Poland's Finance Ministry has announced its intention to issue another Eurobond this quarter following the issue in September of EUR 1bn of a 10yr Eurobond, this new one is being planned with a 6-year maturity. 

Policymakers connected with the issue have confirmed in their remarks that the issue was not fully pre-planned but is being made in order to take advantage of still favourable borrowing costs around EU markets. Based on the September pricing, it could be imagine that pricing for this bond close to 45bp spread over relevant swap rates. 

"Poland has 95% of its 2015 borrowing targeted already completed, so such issues are purely opportunistic pre-financing of 2016 borrowing requirements, the FX composition of Polish government debt is gradually declining, with the FX component projected at 33.1% of total by end-2015 vs. 35.3% a year ago. Near-term PLN-positive", says Commerzbank.