Poland is selling US$2bn of bonds in its first dollar bond in almost four years with Barclays Capital, Citigroup and HSBC as lead arrangers.
On July 7, investors placed more orders than the government initially offered, prompting Poland to increase its sale by 25% from US$1.5bn.
The 10-year debt is being priced to yield 290 basis points above similar maturity US Treasuries, almost five times the spread of 59.8 basis points when Poland last sold dollar bonds in 2005.
Poland, the EU’s largest Eastern European member, signed a one-year, US$20.6bn credit line from the IMF in May to shield its economy and currency from the global credit crisis.
Poland is rated A- by Standard & Poor’s and Fitch Ratings, and one level higher at A2 by Moody’s Investors Services.
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