Poland is preparing to hold a second round of bond sales on international markets to meet its financing needs. The Warsaw Finance Ministry has mandated banks BNP Paribas SA, Deutsche Bank AG, Banco Santander SA and Societe Generale SA to arrange a seven-year Eurobond issue. Unnamed sources indicate that Poland is offering Eurobonds with a yield of around 90 basis points above the benchmark (mid-swap).

The move comes after Poland sold Japanese yen-denominated bonds in recent weeks and reflects the country's increased reliance on foreign currency bonds to fund spending pledged in the run-up to the October election, as well as new arms spending in the context of the war in Ukraine.

Next year's draft budget shows a 160% increase in Poland's bond sales. Emerging-market issuers are taking advantage of loosening financing conditions and falling US bond yields, caused by signs that the US Federal Reserve may slow its aggressive interest-rate hikes. This trend has allowed some bond sales that had previously been suspended to resume.