PKO Bank Hipoteczny successfully priced the next benchmark issue of covered bonds worth PLN 500 million

2017-04-25

PKO Bank Hipoteczny offered to institutional investors covered bonds with a nominal value of PLN 500 million. Spread over WIBOR 3M of 69 bps was set after the official bookbuilding process which was conducted on 24^th of April 2017. The bonds mature on 18^th May 2022. Covered bonds will be issued on 29th of April 2017.

Rafał Kozłowski, CEO of PKO Bank Hipoteczny, said: PKO Bank Hipoteczny consistently continues to diversify funding sources of the PKO Bank Polski Group. The next benchmark polish zloty- denominated covered bond issue further strengthen our strategic position of a regular issuer on domestic market. We are pleased that our another issue of covered bonds has met with interest among investors.

21 investors subscribed for a total of PLN 645 million which was 29% oversubscribed. They came from 6 European countries. Domestic investors took almost 67% of the issue.

Type of investors	Share
Pension Funds	37%
Mutal Funds/AM	31%
Banks	29%
Insurers	2%

PKO Bank Hipoteczny is the most active covered bond issuer in Poland. In 2016 it conducted Poland’s first ever benchmark issue of Euro-denominated covered bonds with a nominal value of 500 million euro, as well as two benchmark Polish zloty-denominated covered bond issues with a total value of 1 billion zloty. In the first quarter of 2017 PKO Bank Hipoteczny issued Euro-denominated covered bonds with a nominal value of 525 million euro.

The forth series of Polish zloty-denominated covered bonds is a part of PKO Bank Hipoteczny’s Covered Bonds Issuance Program targeting the domestic market, on the basis of the Base Prospectus approved by Poland’s Financial Supervision Authority (KNF) on 12 November 2015.

In December 2015, Moody’s rated PKO Bank Hipoteczny’s Covered Bonds Issuance Program Aa3 – the highest possible rating for Polish securities. This was reflected in the ratings agency’s report dated 22 March 2017. Covered bonds are a type of debt instruments secured by payments on mortgage loans, and constitute one of the world’s safest financial instruments. PKO Bank Hipoteczny’s covered bonds are secured solely by Polish zloty-denominated housing loans.

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PKO Bank Hipoteczny is 100% owned by PKO Bank Polski, and specialises in PLN-denominated residential mortgage loans. PKO Bank Hipoteczny's main goal is to provide long-term financing by issuing covered bonds. In August 2014, PKO Bank Polski received approval from Poland's Financial Supervision Authority to set up a mortgage bank, which began its operations in April 2015.

Legal disclaimer

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

NOT FOR PUBLICATION OR DISTRIBUTION IN THE UNITED STATES, CANADA, JAPAN OR AUSTRALIA.
This announcement is of a promotional nature only and does not constitute an offer or the solicitation of an offer to subscribe for or purchase of covered bonds (“Covered Bonds”) issued by PKO Bank Hipoteczny S.A. (the “Issuer”). The prospectus approved by the Polish Financial Supervision Commission (Komisja Nadzoru Finansowego) on 12 November 2015, together with any supplements and update reports thereto, and the final terms relating to the Covered Bonds, which will be published on the Issuer’s website (www.pkobh.pl) and on the website of Dom Maklerski PKO Banku Polskiego (www.dm.pkobp.pl), constitutes the only legally binding document containing information about the issuance by the Issuer of the Covered Bonds. Any investment decisions should be made on the basis of the above mentioned documents only.
The offer and the distribution of this announcement and other information in connection with the listing and offer of the Covered Bonds in certain jurisdictions may be restricted by law and persons into whose possession any document or other information referred to herein comes should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction. This announcement is not an offer for sale of any securities in the United States. The Covered Bonds have not been and will not be registered in accordance with the U.S. Securities Act of 1933, as amended (Securities Act) and may not be offered or sold in the United States absent registration or an exemption from registration under the Securities Act. The Issuer does not intend to register any portion of any offering in the United States or to conduct a public offering of any securities in the United States. This announcement is directed only at (i) persons who are outside the United Kingdom or (ii) persons with professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (Order) or (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2) of the Order (all such persons together being referred to as "relevant persons"). Any investment activity to which this communication relates will only be available to and will only be engaged with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents.