Last week, the Ministry of Finance placed 10- and 20-year bonds with a total nominal value of €3.75 billion on the euro market. This is historically the largest transaction carried out by the Ministry of Finance on this market.

The bond issue attracted huge interest from investors, who made a total demand of €10.2 billion, confirming their confidence in the foundations of the Polish economy.

The €2.5 billion 10-year bond maturing on 11 January 2034 was priced 115 basis points above the average swap rate. A return of 3.716% was achieved, with an annual coupon of 3.625%.

The €1.25 billion 20-year bond maturing on 11 January 2044 was priced at 160 basis points above the average swap rate. A return of 4.175% was achieved, with an annual coupon of 4.125%.

Buyers of the 10-year bond included investors from UK (43%), Germany (18%), Middle East countries (7%), Poland (5%), Austria (3%), Benelux countries (3%), France (3%), Switzerland (3%), other European countries (14%) and other non-European countries (2%).

The entity structure of investors in 10-year bonds included investment funds (57%), banks (19%), central banks and public institutions (14%), insurance institutions and pension funds (4%) and other financial institutions (6%).

Buyers of 20-year bonds included investors from UK (52%), Germany (18%), Austria (4%), France (4%), Switzerland (4%), Middle Eastern countries (3%), Poland (1%), other European countries (10%) and other countries outside Europe (4%).

The entity structure of investors in 20-year bonds included investment funds (53%), banks (12%), central banks and public institutions (12%), insurance institutions and pension funds (11%) and other financial institutions (12%).

Adrian Andrzejewski