2025-06-26

On June 25, 2025, PKO Bank Hipoteczny issued four-year mortgage bonds with a total face value of €500 million. The mortgage bonds included international investment funds, commercial banks and the central bank of a Nordic country.

- After an absence of three years, we successfully returned to the European market by issuing mortgage bonds with a value of €500 million. In the first 90 minutes after the launch of the offering, demand exceeded one billion euros, eventually reaching almost 2.5 times the value of the offering. Fifty-five reputable European financial institutions expressed their willingness to take up the mortgage bonds. This shows that PKO Bank Hipoteczny mortgage bonds are attractive securities for international investors, says Wojciech Papierak, CEO of PKO Bank Hipoteczny. 

The mortgage bonds were issued under PKO Bank Hipoteczny's International Mortgage Bond Issuance Program (EMTN) aimed at qualified investors, based on a base prospectus approved by the Commission de Surveillance du Secteur Financier in Luxembourg on June 6, 2025, and are listed on the regulated market operated by the Luxembourg Stock Exchange.

Book-building took place on June 17, 2025. The issue date of the mortgage bonds was June 25, 2025, and their maturity date (redemption date) was June 12, 2029. The margin was 45 basis points over the midswap rate*.

Almost half of the issue was taken up by investors from Germany, Austria and Switzerland. Almost a third was taken up by reputable investors from the Nordic countries (including the region's central bank), while more than 10% of the mortgage bonds were allocated to institutions from the UK and Ireland. About 2% of the issue was taken up by institutions from Poland.

The PKO Bank Hipoteczny mortgage bond issue of June 25, 2025 is the largest issue by a Polish mortgage bank on international markets this year. Its global coordinator was UniCredit, and banks Danske Bank, Landesbank Baden-Württemberg, PKO BP and Santander also participated. White & Case law firm was the legal advisor.

PKO Bank Mortgage's June issue mortgage bonds received a Moody's Aa1 rating. This is the highest rating that Polish debt securities can receive.

PKO Bank Hipoteczny is considering further mortgage financing in the Polish and international markets.

 

* Mid-swap is the price that is the midpoint between the bid and offer prices in swap transactions

 

About PKO Bank Hipoteczny

- Conducted on June 25, 2025, the issue is the 32nd issue in PKO Bank Mortgage's history.

- To date, PKO Bank Hipoteczny has issued mortgage bonds with a total face value of more than PLN 25 billion (including covered bonds with a total face value of more than PLN 9 billion and covered bonds with a total face value of EUR 4 billion).

- After the latest issue, PKO Bank Hipoteczny has about 45% share of the mortgage bond market

in Poland (there are five mortgage banks operating in our country).

- Since the beginning of 2025, PKO Bank Hipoteczny has carried out two issues with a total value of

PLN 2.9 billion (including €500 million). This is the highest amount of issuance this year carried out by mortgage banks in Poland.

- The interest rate on mortgage bonds issued by PKO Bank Hipoteczny in February

2025 in PLN had a margin of 80 bps above the WIBOR reference rate (that's 0.8% above WIBOR). The total face value of this issue was PLN 800 million.

- The main collateral for PKO Bank Hipoteczny's mortgage bonds is high-quality mortgages.

- PKO Bank Hipoteczny maintains collateral for its mortgage bonds at a higher level than required by regulations (including the Act of August 7, 1997 on mortgage bonds

and mortgage banks).

 

Mortgage bonds are debt securities that:

 

- are issued by specialized mortgage banks to raise capital to finance new mortgage portfolios,

- are backed by a portfolio of high-quality mortgages (or other legally permitted debt, such as Treasury bonds and National Bank of Poland money bills),

- mortgage banks are obliged to redeem mortgage bonds on a specified date

and pay interest to investors

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