Poland is positioning itself to return to the Swiss franc-denominated bond market after an absence of more than a decade, seeking to take advantage of favorable borrowing costs even as global yields trend higher.
Officials have named BNP Paribas and UBS Investment Bank as joint bookrunners to arrange a fixed-income investor call set for Wednesday, according to people familiar with the matter. The Finance Ministry has said any prospective transaction would depend on market conditions.
Sources say the government is considering a benchmark, multi-tranche senior unsecured offering that could span several maturities along the curve. Those same sources indicated a green bond component is among the options being discussed. The people who described the plans asked not to be identified because the details have not been publicly announced.
Poland last accessed the Swiss franc market in April 2015, when it issued 580 million francs in bonds that carried a negative yield. At present, the sovereign has no outstanding debt denominated in Swiss francs.
Context and mechanics
The mechanics under consideration include the appointment of joint bookrunners to manage investor outreach and the possibility of multiple tranches to cover a range of maturities. Any final decision on timing, sizing or structure will be shaped by prevailing market conditions, the Finance Ministry has made clear.
The inclusion of a green tranche is not confirmed, but is cited by those briefed on the plans as a potential element of the offering. The green component, if included, would form part of the senior unsecured benchmark issue under discussion.
What remains uncertain
Key aspects of the proposal are still tentative: the transaction depends on market conditions, the final tranche structure has not been set, and officials have not publicly disclosed the plans. Observers note that Poland currently carries no franc-denominated bonds on its balance sheet, leaving this potential sale as a new issuance rather than a refinancing of existing franc debt.
As discussions progress, the next public sign of advancement would likely be the investor call organized by the appointed bookrunners.