* Czechs price 1.5 bln, 2014 euro bond at 190 bps over swaps
* Czech FinMin says second issue unlikely this year
* Poles planning roadshow for $1 bln dollar bond
* Analysts say sovereigns tapping "window of opportunity"
By Robert Mueller
PRAGUE, April 29 (Reuters) - The Czech Republic priced a 1.5
billion euro bond on Wednesday and Poland said it was planning
at least a $1 billion dollar issue in what analysts called a
window of opportunity for emerging economies to raise funds.
The 5-1/2 year Czech bond, carrying a 4.5 percent coupon,
drew bids of over 2 billion euros, the Finance Ministry said,
and covered a large chunk of the emerging European Union
member's 2009 financing needs.
It came during a rebound in sentiment in emerging markets
and double-digit rallies in global stock markets since March,
along with a pact by industrial nations to boost funds for the
International Monetary Fund to bail out emerging countries.
"This is a clear window of opportunity... With the general
improvement in the global setting and a demand for more risk,
the market for euro bond issuance has just become that much more
open," said Simon Quijano, EMEA economist at Cheuvreux.
"This paves the way for other sovereigns in the region to
issue."
The Czech bond was priced at mid-swaps plus 190 basis
points, a jump over levels seen last June, when the Czechs
issued a 2 billion euro, 10-year euro benchmark at 25 basis
points over swaps before the economic crisis hit debt markets.
But risk premiums have eased from February, when the Czechs
scrapped plans for a euro issue as the price of credit default
swaps shot up, at one point reaching 350 basis points.
That has since fallen to 150 basis points and, in the rally
that has lifted emerging markets sentiment since March, the
Czechs have sold more domestic bonds than originally planned.
Asked by Reuters if the Czechs would launch another issue on
foreign markets this year, Finance Minister Miroslav Kalousek
said: "I cannot rule it out 100 percent, but probably not."
He added the sale looked "very good".
Barclays, Deutsche Bank <DBKGn.DE> and Erste Bank's
<ERST.VI> Czech unit Ceska Sporitelna were lead managers on the
deal, and the source said around 180 investors had taken part.
The outstanding Czech 2014 euro bond was quoted at a yield
of 4.376/942, bid 173 basis points over swaps at 0900 GMT.
FINANCE GAPS WIDEN
Polish deputy Finance Minister Dominik Radziwill said Warsaw
was planning a week-long roadshow in early June for a planned US
dollar denominated bond issue [].
"At the beginning of June, we plan a weekly roadshow in the
United States and we plan a benchmark issue of at least 1
billion dollars. We are considering five-or ten-year bonds, not
shorter," Radziwill told Reuters.
"It cannot be ruled out that the issue will take place by
the end of the second quarter." In an interview earlier,
Radziwill also said Poland was considering a Swiss franc bond.
Poland has issued 1 billion crowns in euro-denominated bonds
this year.
It has weathered the global crisis better than many of its
peers, but weaker growth and lower budget revenues have pushed
up budget deficit estimates there and across the region, and
Warsaw has asked for a $20.5 billion credit line from the
International Monetary Fund to prevent financing problems.
A top cabinet aide said last week the general government
deficit could jump to 4.6 percent of gross domestic product this
year, well above the 2.5 percent forecast in the country's euro
convergence plan.
The Czechs are facing a similar situation. Analysts say with
the new bond adding to domestic issuance so far this year, the
Czechs had covered more than half of their borrowing needs for
2009. But an expected economic contraction of 2.3 percent is
expected to drive down budget revenues.
That, combined with an expected increase in spending ahead
of elections planned for October, is expected to triple the
budget gap to 4.5-5 percent of gross domestic product.
Proposed new Finance Minister Tomas Uvira -- expected to
replace Kalousek in an interim cabinet due to take office on May
9 -- was quoted on Wednesday as saying the central state budget
deficit may hit 200 billion crowns ($9.91 billion) this year,
above Kalousek's forecast of 150 billion. []
(Additional reporting by Pawel Sobczak; writing by Michael
Winfrey; editing by Patrick Graham)
