2017-03-24
  • On 23rd of March 2017 PKO Bank Hipoteczny priced covered bonds worth EUR 500 million with the maturity date falling on 24th of January 2023 and a spread over EUR Mid-SWAPs of 27 bps.
  • In the process of bookbuilding, over 70 investors placed orders for PKO Bank Hipoteczny's covered bonds totaling to EUR 800 million.
  • Covered bonds will be issued on 30th of March 2017.

PKO Bank Hipoteczny offered to institutional investors covered bonds with a nominal value of EUR 500 million. Spread over EUR Mid-SWAPs of 27 bps was set after the official bookbuilding process which was conducted on 23rd of March 2017. The bonds mature on 24th January 2023.

Rafał Kozłowski, CEO of PKO Bank Hipoteczny, said: Consistently, we are diversifying funding sources of the PKO Bank Polski Group, and we are extending their maturities. We successfully completed the bookbuilding of the second international benchmark size issuance of euro-denominated covered bonds. At the same time we expanded the group of investors as well as the number of countries they come from. In such a way we confirmed our strategy of being a regular covered bond issuer on the European market.

In preparation for the trade, PKO Bank Hipoteczny met with around 50 investors during a series of fixed income investor meetings across Europe, lasting from 14th of March 2017 to 17th of March 2017. The meetings were arranged by LBBW, PKO Bank Polski, Santander, SG CIB and UniCredit. The issuer visited several financial centers in Benelux, France, Germany, Italy, Poland and the UK.

Only five months after the debut offer, PKO Bank Hipoteczny managed to ensure a high quality order book which was 1.5 times oversubscribed, the demand in the second transaction coming from over 70 investors from 16 countries, the main shares shown below.

Country of origin

Share

Germany

51%

Austria

9%

UK

9%

CEE

7%

Benelux

6%

Italy

6%

Nordics

5%

other

7%

On the 28th of September 2016 the Commission de Surveillance du Secteur Financier in Luxembourg approved the 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.

In 2016 PKO Bank Hipoteczny was the most active issuer of covered bonds in Poland. 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.

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PKO Bank Hipoteczny is 100% owned by PKO Bank Polski, Poland's largest bank, and specialises in zloty-denominated housing loans. PKO Bank Hipoteczny's main purpose is to secure 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 operating in April 2015.

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.
1. These materials are not an offer of securities for sale in the United States. The securities to which these materials relate 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.
2. The securities are not offered in Poland in a public offering within the meaning of the Act dated 29 July 2005 on Public Offerings.
3. This document is being distributed to and is only directed at (i) persons who are outside the United Kingdom, (ii) to investment professionals falling within Article 19(1) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”), (iii) high net worth companies, and (iv) other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons in (i) to (iv) above together being referred to as “relevant persons”). Any invitation, offer or agreement to subscribe, purchase or otherwise acquire securities will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents.
4. This is an advertisement and not a prospectus for the purposes of EU Directive 2003/71/EC, as amended (the Directive) and/or Part IV of the Financial Services and Markets Act 2000. A prospectus has been prepared and made available in accordance with the Directive. Investors should not subscribe for any securities referred to in this advertisement except on the basis of information contained in the prospectus. Investors may obtain a copy of the prospectus on the website of the Luxembourg Stock Exchange.