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Poland Ditches Wibor for New Benchmark
22 Nov
Summary
- Poland issued new bonds with payouts tied to a new money-market benchmark.
- This marks a significant step in phasing out the Wibor rate by end of 2027.
- The new notes utilize the Polstr rate, reflecting historical interbank rates.
Poland's government has launched its first bonds pegged to a new money-market benchmark, signaling progress in a long-anticipated shift away from the Wibor rate. This strategic move is part of a broader plan to fully transition by the close of 2027.
The Finance Ministry successfully sold 1.88 billion zloty ($510 million) worth of new notes, set to mature in September 2028. These newly issued debt instruments represent approximately 16% of the bonds offered at a recent auction.
Crucially, these bonds are grounded in the Polstr rate, which is derived from historical overnight interbank rates. This contrasts with the existing Wibor rate, which is based on banks' projections of future borrowing costs, indicating a significant change in Poland's financial market infrastructure.
