KGHM plans a EUR 1bn bond issue this year
Poland's largest copper and silver producer KGHM Polska Miedz plans a Eurobond issue worth as much as EUR 1bn this year, to finance its expansion on the telecom market. According to unconfirmed information, the issue may take place at the turn of the first and second quarter of this year. There is a danger, however, that the new issue could further undermine KGHM's falling stock, which reached a 19-month low yesterday. The company saw its shares slumping 18% in the last seven sessions, as world copper prices were decreasing and the zloty was strengthening. KGHM is investing in the telecommunication sector to avoid the negative influence of copper price fluctuations. The company has recently became a sole owner of the local fixed-line operator Telefonia Lokalna, and holds a stake in the mobile-phone operator Polkomtel. KGHM wants the money from the issue to finance Lokalna's expansion as well as to raise its stake in Polkomtel to as much as 33% from the current 19.61%.
Źródło:IntelliNews Daily
