The bookbuilding process attracted 60 investors that placed orders for PKO Bank Hipoteczny’s covered bonds totalling EUR 850 million.
On 15th March 2018 PKO Bank Hipoteczny priced covered bonds worth EUR 500 million with a maturity date of 24th January 2024 and a spread over EUR Mid-Swaps of 23 bps.
The covered bonds will be issued on 22nd March 2018 and will be listed on the stock exchanges in Luxembourg and Warsaw.
PKO Bank Hipoteczny offered covered bonds with a nominal value of EUR 500 million to a wide range of institutional investors. The bonds will mature on 24th January 2024. A spread over EUR Mid-Swaps of 23 bps was set after the official bookbuilding process which was conducted on 15th March 2018.
Jakub Niesłuchowski, CFO and acting CEO of PKO Bank Hipoteczny, said: With the fourth euro-denominated covered bond issuance PKO Bank Hipoteczny confirmed its well-proven track record as a regular issuer on the European market.We are glad that our offer once again met with sizable interest. That proves PKO Bank Hipoteczny covered bonds as well as the Bank itself gained investors trust.
In the bookbuilding process orders for PKO Bank Hipoteczny’s covered bonds came from 60 investors out of 14 countries and the demand reached EUR 850 million. The issued amount of EUR 500 million was finally allocated to 56 investors from 13 countries.
Allocation by region | Share |
Germany | 65% |
Austria | 14% |
France | 5% |
Nordics | 5% |
Benelux | 4% |
Switzerland | 3% |
Rest of Europe | 3% |
Asia | 1% |
Allocation by investor type | Share |
Banks | 45% |
Asset Management | 40% |
Insurance and pension funds | 12% |
Central banks and official institutions | 3% |
BNP Paribas, HSBC, LBBW and PKO Bank Polski were engaged in the transaction as joint bookrunners, while Helaba and Raiffeisen Bank International AG acted as co-managers.
On the 6th September 2017 the Commission de Surveillance du Secteur Financier in Luxembourg approved the Base Prospectus, supplemented on 12th March 2018, for PKO Bank Hipoteczny’s international covered bond programme. The programme stipulates that the covered bonds may be admitted to trading on the stock exchanges in Luxembourg and Warsaw.
PKO Bank Hipoteczny is the biggest and the most active issuer of covered bonds in Poland. The current issue is the 12th conducted by the Bank (both EUR and PLN denominated). The value of outstanding covered bonds of PKO Bank Hipoteczny at the end of 2017 was PLN 8.9 billion.