LOT Launches USD 100 Million Five Year Floating Rate Notes

24th May 1998

The inaugural bond issue of Polskie Linie Lotnicze LOT SA, the national Polish air carrier, will be lead managed by Bank Austria / Creditanstalt. The USD Floating Rate Notes will have a volume of USD 100 million and a maturity of 5 years. The bonds are expected before summer 1998. Listing will be at the Luxembourg Stock Exchange.

LOT’s euro bonds has a spread of max. 130 bps over LIBOR. In comparison, The Republic of Poland’s USD 300 million bond 7,125% due July 1, 2004, currently (as of June 15, 1998) has a spread of 98 bps over UST or 57 bps over USD LIBOR. The Republic of Poland presently rated BBB (positive outlook) by S&P and Baa3 by Moody’s. This rating is expected to be upgraded in 1998.

Bank Austria Creditanstalt therefor regards LOT’s inaugural bond issue as offering an attractively priced diversification opportunity to investors’ present Polish holdings.



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