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June 30, 2017 www.intellinews.com I Page 25
bne:Credit Belarus central bank
to cut key rate by 1 pp to 12% in July
Poland mulling bond issue denominated in euros or US dollars
The National Bank of Belarus (NBB) will reduce its benchmark interest rate by 1 percentage point (pp) to 12% on July 19, the regulator said on June 28.
The central bank attributed the move to the fact that inflation remains low in the country, estimated in June at 6.2% in in annual terms, while core inflation will be at about 5.3% in annual terms. A moderate growth rate of the money supply, positive changes in the balance of payments, and the stability of the currency market add to these positive tendency, according to the NBB.
Poland is considering issuing debt denominated in euros or US dol- lars in the fourth quarter, the country’s deputy finance minister said on June 27.
Deputy Finance Minister Piotr Nowak said Poland is looking at capitalising on “enormous interest” from the investors. After a period of early worries about the Polish economy and government deficit under the administration of nationalist Law and Justice (PiS), indicators now suggest the premises of growth are strengthening while the deficit will be contained.
Poland is also considering debt issuance on the Chinese market as well as Japan and Australia, while it gave up on a rupee-denomi- nated issue in India, Nowak said, according to ISBNews.
US investors bought up around $900mn, or almost two thirds, of $1.4bn dual-tranche US dollar-denominated Eurobonds with five- year and ten-year maturities placed by Belarus on June 22, Interfax news agency reported, citing unnamed banking source.
Investors from the UK bought 26% ($365mn) of Eurobonds, and investors from continental Europe bought 9%, or $125mn.
The yield of the five-year tranche raising $800mn was 7.125%, with the ten-year tranche raising $600mn at 7.625%. Aggregate investor demand for the securities exceeded $3.1bn. Belarus has mandated Citigroup and Raiffeisen Bank International for investor meetings in the US and Europe.
US investors reportedly buy two thirds of Belarus’ $1.4bn Eurobonds