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Bank Gospodarstwa KrajowegoPoland's development bank to issue PLN 9.5 bln in COVID-19 fund bonds in Q4 at five auctions
The revised financial plan for the COVID-19 Response Fund provides for additional debt financing in the amount of PLN 9.5 billion (EUR 2.2 bln), which Poland's state development bank BGK plans to obtain through the sale of bonds at five auctions, although private placements are also possible, managing director of the financial markets division at BGK Piotr Marczak told PAP Biznes. The bank plans to issue bonds for the Aid Fund in 2025; it does not plan to issue bonds for the National Road Fund (KFD) and Armed Forces Support Fund (FWSZ).
"Due to the change in the Financial Plan of the COVID-19 Response Fund for 2025, we are resuming the sale of bonds at auctions in the fourth quarter of this year. The revised financial plan assumes additional debt financing in the amount of PLN 9.5 billion. We plan to raise this amount through the sale of bonds at five auctions, although we do not rule out private placement issues," Marczak wrote in a comment sent to PAP Biznes.
"We will offer bonds on the existing terms, and auctions will be held the day after the treasury bond auction. We have published the auction schedule on the BGK website, and we will provide detailed information in announcements published before each auction," he added.
The tender calendar for the COVID-19 Response Fund shows that BGK is planning auctions on October 24 and 30, November 17 and 27, and December 9.
The amendment to the Fund's financial plan, effective from October 15, states that debt issues for the COVID-19 Response Fund in 2025 will increase to PLN 27.7 billion (EUR 6.5 bln).
As Marczak pointed out, the last bond auction for the Fund took place at the end of June 2025, and in the entire first half of the year, BGK sold bonds with a total value of PLN 18.1 billion (EUR 4.3 bln) at 11 auctions.
The managing director of the financial markets division at BGK also announced that BGK plans to issue bonds for the Aid Fund in 2025. However, it does not plan to issue bonds for the National Road Fund (KFD) and the Armed Forces Support Fund (FWSZ).
"This year, we also plan to issue bonds for the Aid Fund. If market conditions are favourable, as we have previously indicated, this will be an issue on the foreign market or a private placement on the domestic market. Both issues under consideration would have a limited value in terms of supplementary financing and diversification of financing sources," Marczak said.
"However, we do not plan to issue bonds for the National Road Fund (KFD) and Armed Forces Support Fund (FWSZ) by the end of this year," he added.
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