Poland Returns to Foreign Debt Markets with $6 Billion Bond Issue

Poland Returns to International Bond Markets with $6 Billion Sale

Poland has become the latest emerging-market sovereign to return to international bond markets since the start of the war in Iran, selling $6 billion of dollar-denominated bonds on Tuesday. The government successfully priced $1 billion of five-year notes and $2.5 billion each of 10- and 30-year bonds.

The sale marked a significant return to foreign-debt markets for Poland, which had previously sold €3.25 billion ($3.76 billion) in euro-dominated notes in January and ¥211.6 billion ($1.3 billion) of Samurais in February. The country plans to issue the equivalent of €10 billion to €12 billion in foreign bonds this year, a substantial increase from its previous sales.

The yield on the 30-year bond, which matures in 2055, will yield 1.30 percentage points over US Treasuries, representing a 0.30 percentage point tightening compared to initial price talk. This sale follows a period of volatility in the global market, which was triggered by the outbreak of war in the Middle East in late February. The move had halted a rally in EM assets and led to increased global uncertainty.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Poland's recent efforts to stabilize its economy have included cutting taxes on fuels to prevent a spike in oil prices from reviving domestic inflation pressures. Additionally, the country reduced the supply of local-currency bonds at auctions last month.

The sovereign's last dollar-denominated deal was in February 2025, when it sold $5.5 billion in five- and 10-year notes. The yield on the bond maturing in 2035 currently stands at 5.11%, which is up from 4.72% just before the outbreak of war but below last month's peak of 5.23%.

The bond sale was managed by Citigroup Inc., Goldman Sachs Group Inc., JPMorgan Chase & Co., and Societe Generale SA.