Until recently, fixed-income investors looking to gain exposure to the appreciating zloty have been largely limited to Polish government bond markets. Polish T-bill yields have been as high as 24% in recent months, but convertibility, settlement and credit risk have deterred many international investors.In late January the EBRD offered $30 million of dollar-denominated one-year bonds carrying a 20.5% coupon payable in dollars but with the overall return linked to the performance of the zloty. The proceeds of the deal were swapped into floating-rate dollars.According to syndicate officials at the deal's lead manager, Chemical Investment Bank, assuming a stable zloty/dollar exchange rate performance from the launch date, the deal offered an effective...
