Fear of currency exposure in the Polish zloty bond market has prompted the re-introduction of an unfashionable instrument in the emerging currency sector.

On Monday the European Investment Bank sold Z200m (€51m) of securities due November 2004. It was the fourth zero coupon deal since September, when Helaba re-opened the market for bonds that are massively discounted to par and coupons are effectively re-invested so the bonds pay nothing until final maturity.