2019-06-06
  • PKO Bank Hipoteczny as the first mortgage bank in Poland joins the elite group of global issuers offering green covered bonds.
  • The value of the issue will amount to PLN 250 million and the maturity date of green covered bonds is 30 September 2024.
  • Spread over WIBOR 3M of 60 bps was set in the book building process which was conducted
    on 5 June 2019.

The issue of PKO Bank Hipoteczny's green covered bonds is a pioneering offer on the Polish market, addressed to demanding investors. These include mainly financial institutions that expect security, satisfactory rate of return and the certainty that their funds are used for financing sustainable investments

Green covered bonds are type of green bonds, where the proceeds will be exclusively applied for financing new or refinancing existing long-term residential mortgages with high energy efficiency. Green covered bonds are practically identical in terms of transaction structure and risk, like traditional mortgage covered bonds. The main difference is that the capital obtained from the issue of green mortgage covered bonds is intended only for financing of energy-efficient mortgages. Green covered bonds issued by PKO Bank Hipoteczny as the first in Poland received the Climate Bonds Initiative Certification, confirming the highest green standards set out in the Paris Agreement were met.

While preparing the issue of green covered bonds, PKO Bank Hipoteczny developed the Green Covered Bond Framework ("GCBF") https://www.pkobh.pl/en/investor-relations/green-covered-bonds/ - a document setting forth the standards for the issue of green bonds, which was established in accordance with the guidelines of Green Bond Principles 2018 (“GBP”). The rules are voluntary process guidelines that recommend transparency and disclosure and promote integrity in the development of the green bond market by clarifying the approach for issuance of a green bond.

It is recommended that in connection with the issuance of a green bond, issuers appoint an external review provider to confirm the alignment of their bond with the core components of the GBP. An institution with environmental expertise that is independent from the issuer may issue a Second Party Opinion. PKO Bank Hipoteczny has obtained second party opinion as a confirmation of compliance of the GCBF with GBP from Sustainalytics - the certified international provider https://www.sustainalytics.com/sustainable-finance/wp-content/uploads/2019/06/PKO-Bank-Hipoteczny-SA-Green-Covered-Bond-Framework-Second-Party-Opinion.pdf

According to the rules adopted in the GCBF, PKO Bank Hipoteczny, within one year from the date of issue of green covered bonds, will publish, on the Bank’s website, a report on the allocation of funds raised under the issue.

Criteria for the assessment and selection of green assets, previously developed by PKO Bank Hipoteczny SA have been accepted by the international Climate Bonds Initiative under their Low Carbon Buildings Criteria and serve now as proxy for energy-efficient residential properties market in Poland.

EEM: a pan-European project with the participation of PKO Bank Polski and PKO Bank Hipoteczny

In April, PKO Bank Polski and PKO Bank Hipoteczny, as the first banks in Poland, joined the pilot project Energy Efficient Mortgages (EEM)

https://www.pkobh.pl/en/about-us/news/energy-efficient-mortgages-initiative-a-paneuropean-project-with-the-participation-of-pko-bank-polski-and-pko-bank-hipoteczny/

The project aims to create standardized, pan-European solutions for mortgage loans for housing and home financing, including energy-efficient solutions.

***

PKO Bank Hipoteczny specializes in PLN- denominated residential mortgage loans. PKO Bank Hipoteczny’s main goal is to provide long-term financing by issuing covered bonds.

PKO Bank Hipoteczny is 100% owned by PKO Bank Polski the largest Polish bank. 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.

Thanks to the dynamic development of PKO Bank Hipoteczny quickly gained the position of the leader of the mortgage market and is currently the largest mortgage bank and the most active issuer of covered bonds in Poland. As the only issuer from Poland, PKO Bank Hipoteczny since October 2016 has regularly performed benchmark issues of covered bonds denominated in euro, which are dedicated to institutional investors from the international market. PKO Bank Hipoteczny is also an active issuer of covered bonds denominated in domestic currency. The total value of outstanding covered bonds of PKO Bank Hipoteczny as of the end of April 2019 amounted to PLN 15.8 billion.

PKO Bank Hipoteczny is a member of The European Covered Bond Council (ECBC). In February 2018 PKO Bank Hipoteczny became the first Polish issuer to join the Covered Bond Label. The Covered Bond Label is a quality label, the purpose of which is to highlight the security and quality of covered bonds to investors and to further enhance recognition of and trust in the covered bond asset class.

For further information please contact:

Bogumiła Laudowicz-Burda

Investor Relations Manager

PKO Bank Hipoteczny

02-515 Warszawa,

ul. Puławska 15

+48 22 521 57 77

+48 721 200 519

bogumila.laudowicz-burda@pkobh.pl

 

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 (iv) other persons to whom it may lawfully be communicated, falling within Article 49(2) of the Order (all such persons mentioned in points (i) – (iv) 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.

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