- On the 27th of October 2017 PKO Bank Hipoteczny will issue Polish zloty-denominated covered bonds worth PLN 500 million with the maturity date falling on the 27th of June 2023.
- A spread over WIBOR 3M of 60 bps was set after the official bookbuilding process which was conducted on 24th October 2017.
PKO Bank Hipoteczny offered institutional investors covered bonds with a nominal value of PLN 500 million with the maturity date falling on the 27th of June 2023. A spread over WIBOR 3 M of 60 bps was set after the official bookbuilding process which was conducted on 24th October 2017.
Rafał Kozłowski, CEO of PKO Bank Hipoteczny, said: “It is our third domestic covered bond issuance this year. This time we are conducting it in the form of firm commitment underwriting. Therefore we can provide investors with a favorable formula of DvP settlement. We are glad that the development of the Polish covered bond market is making progress. We are proud we contribute to it.”
In the DvP formula the payment for the covered bonds is made by investors on the issue date.
The 6th series of Polish zloty-denominated covered bonds is a part of PKO Bank Hipoteczny’s Covered Bond Issuance Program targeting the Polish domestic market, on the basis of the Base Prospectus approved by Poland’s Financial Supervision Authority (KNF) on the 12th of 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 the 22ed of March 2017. Covered bonds are a type of debt instruments secured by payments on mortgage loans. PKO Bank Hipoteczny’s covered bonds are secured solely by Polish zloty-denominated housing loans.
PKO Bank Hipoteczny is the biggest and the most active issuer of covered bonds in Poland. The current issue is the 10th conducted by the Bank. The value of outstanding covered bonds of PKO Bank Hipoteczny as of the 29th September 2017 was PLN 8.37 billion.