Leads BNP Paribas, Citi, Goldman Sachs and Santander printed the new four year at 65bp over mid-swaps from a €1.85bn book.
Price talk had started at 80bp area, before guidance was set at 65bp-70bp by mid-morning. At that stage, books were €1.6bn. The deal had traded tighter on Wednesday morning and was quoted at 50bp over mid-swaps.
The deal had a “heavy high grade flavour” to it, in keeping with the aims of the issuer, according to a banker on the deal. “It is almost offensive to say Poland is an emerging markets issuer,” he added.
Distribution for the deal was also in keeping with core European bank deals. “It was the same sort of accounts who would be in BNP Paribas bonds for instance,” the banker said.
The leads did not offer investors any specific reference points, but pointed investors to the spread between national champions and their sovereigns. Poland’s four year euro-denominated bond was trading flat to mid-swaps, he said.
PKO is rated A2 by Moody’s.