2022-07-05

• On 27 June, PKO Bank Hipoteczny launched a subscription addressed to institutional investors for green covered bonds of EUR 500 million, maturing on 25 June 2025.

• Declarations of interest were collected from more than 50 investors for a total amount of over EUR 850 million.

• During the book bulding process a margin of 36 bp over EUR Mid-Swaps was set. The securities bear a fixed interest rate in euro.

• PKO Bank Hipoteczny’s covered bonds will be listed simultaneously on the Luxembourg and Warsaw stock exchanges.

On 27 June, PKO Bank Hipoteczny launched a subscription for institutional investors for a successive issue of covered bonds of EUR 500 million maturing on 25 June 2025. This issue was the Bank’s first euro-denominated green covered bond issue. The proceeds from the issue are intended to be used to finance and refinance low carbon emission residential buildings. This is the sixth benchmark issue in EUR placed by PKO Bank Hipoteczny.

“This issue is very important not only for PKO Bank Hipoteczny, but also, I hope, for the entire covered bond issuer market in Poland. As a Bank, we aim to continuously improve the quality of our covered bonds and increase investors’ trust worldwide. We hope that other issuers from Poland will follow in our footsteps and that the number of issuers of green bonds will increase. PKO Bank Hipoteczny is strengthening its position as a trusted issuer of covered bonds on the international financial market, as evidenced by the more than a 40 per cent reduction in subscriptions for the latest issue. This success is all the more significant for us as it was carried out in challenging market conditions”, says Katarzyna Surdy, Vice President of the Management Board of PKO BH. “Many thanks to the investors for their trust. This is a reason for satisfaction, but first and foremost is excellent motivation to continue our efforts and strengthen our position as the leader of the mortgage bank market in Poland,” she adds.

The current issue is the twenty-first one carried out by the Bank, counting both EUR and PLN-denominated mortgage bond issues. The total value of the covered bonds issued and outstanding as at 4 July 2022 was PLN 12.3 billion.

Mortgage covered bonds are a type of bonds which are secured with mortgage loan receivables. PKO Bank Hipoteczny’s covered bonds are issued solely on the basis of residential mortgage loans in Polish zlotys which are granted based on conservative criteria in terms of both the assessment of creditworthiness of the borrowers and the valuation of the underlying real properties. Green covered bonds are secured by residential loans selected on the basis of the PKO BH Green Covered Bond Framework and are certified by the Climate Bond Initiative.

PKO Bank Hipoteczny's covered bonds – both denominated in zloty and in euro – have been rated Aa1 by Moody's Investors Service. The level of rating assigned is the highest possible for Polish securities.

Bank Hipoteczny acquires loans for its portfolio through strategic cooperation with PKO Bank Polski, including selling residential loans via the largest network of branches, intermediaries and agents in Poland, and purchasing receivables portfolios from PKO Bank Polski.

PKO Bank Hipoteczny is the largest mortgage bank and the most active issuer of covered bonds in Poland. As the only issuer from Poland, since November 2016, it has been carrying out euro-denominated benchmark covered bond issues (with a minimum value of EUR 500 million) targeted at institutional investors from the international market.

Before gaining access to the information placed on this website please read carefully the content of the following information.

1. This announcement is for information purposes only and does not constitute an offer to sell or the solicitation of an offer to buy any securities.
2. This announcement is not an offer of securities for sale in the United States. The securities to which this announcement relates have not been registered under the US Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. There will be no public offering of the securities in the United States.
3. Any securities issued under the programme are not offered in Poland in a public offering within the meaning of the Act dated 29 July 2005 on Public Offerings.
4. This announcement is being distributed to and is only directed at (i) persons who are outside the United Kingdom, (ii) to investment professionals falling within Article 19(1) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”), (iii) high net worth companies, and (iv) other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons in (i) to (iv) above together being referred to as “relevant persons”). Any invitation, offer or agreement to subscribe, purchase or otherwise acquire securities will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this announcement or any of its contents.
5. This is information and not a prospectus for the purposes of EU Directive 2003/71/EC, as amended (the Directive) and/or Part IV of the Financial Services and Markets Act 2000. A prospectus has been prepared and made available in accordance with the Directive. Investors should not subscribe for any securities referred to in this advertisement except on the basis of information contained in the prospectus. Investors may obtain a copy of the prospectus on the website of the Luxembourg Stock Exchange.
6. A rating is not a recommendation to buy, sell or hold securities and may be subject to revision, suspension or withdrawal at any time by the assigning rating organisation. Similar ratings for different types of issuers and on different types of securities do not necessarily mean the same thing. The significance of each rating should be analysed by investors independently from any other rating.