2017-09-21
  • On 20th September 2017 PKO Bank Hipoteczny priced covered bonds worth EUR 500 million with a maturity date of 27th August 2024 and a spread over EUR Mid-Swaps of 28 bps
  • The bookbuilding process attracted 112 investors that placed orders for PKO Bank Hipoteczny’s covered bonds totaling to almost EUR 1.5 billion.
  • The covered bonds will be issued on 27th September 2017 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 27th August 2024. A spread over EUR Mid-Swaps of 28 bps was set after the official bookbuilding process which was conducted on 20th September 2017.

Rafał Kozłowski, CEO of PKO Bank Hipoteczny, said: Consistently, we are diversifying funding sources of the PKO Bank Polski Group, extending their maturities, and strengthening our strategic position as a regular issuer in the European market. This time, we offered covered bonds with maturity of 7 years and as in previous issues they met with great interest. The demand was almost three times bigger than the value of the issue.  

In the bookbuilding process orders for PKO Bank Hipoteczny’s covered bonds came from 112 investors in 19 countries and the demand reached almost EUR 1.5 billion.

Country of origin

Share

Germany and Austria

55%

France and Benelux

14%

Nordics

13%

UK

5%

Italy

5%

other

8%

HSBC, PKO Bank Polski, LBBW and UBS Investment Bank were engaged in the transaction as joint bookrunners, while Erste Group and DekaBank acted as co-managers.

In preparation for the trade, PKO Bank Hipoteczny conducted a series of fixed income investor meetings, lasting from 13th to 18th September 2017.

On the 6th September 2017 the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg approved updated Base Prospectus for PKO Bank Hipoteczny’s European 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 9th conducted by the Bank. The value of outstanding covered bonds of PKO Bank Hipoteczny as of the 8th September 2017 was PLN 6.15 billion.

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NOT FOR PUBLICATION OR DISTRIBUTION IN THE UNITED STATES, CANADA, JAPAN OR AUSTRALIA OR ANY OTHER JURISDICTION WHERE SUCH PUBLICATION OR DISTRIBUTION IS PROHIBITED BY APPLICABLE LAW.
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.
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