Covered bonds

Covered bonds are registered or bearer securities issued by a mortgage bank and secured by its loans. PKO Bank Hipoteczny issues covered bonds denominated in Polish złoty or in foreign currencies.

Covered bonds are characterised by their high level of safety and low investment risk, primarily because the loans that are the basis for issues of covered bonds are properly secured.

The mortgage bank maintains a registry of the collateral for the covered bonds, in which it lists the receivables, rights and means that constitute the cover pool for the issue of covered bonds, as well as the funds that constitute the buffer for the six months of forward interest payments.

Green Covered Bonds are type of covered bonds where the proceeds will be exclusively applied to finance or re-finance, in part or in full, new and/or existing eligible green projects.

PKO Bank Hipoteczny’s covered bonds are listed on the Warsaw Stock Exchange’s parallel market and on Alternative Trading System organised by BondSpot. The bank was granted Issuer status on 9 December 2015.

PKO Bank Hipoteczny on 4th of August 2016 established the international mortgage covered bonds programme with the maximum amount of outstanding at 4.000.000.000 EUR. PKO Bank Hipoteczny’s covered bonds are listed on LuxSE and Warsaw Stock Exchange’s parallel market.