Second mortgage covered bond issue in a week, this time for institutions, with a total nominal value of EUR 500 million

On April 14, the bank conducted a bookbuilding process for another issue of mortgage covered bonds – this time with a nominal value of EUR 500 million.

"Over 77 international financial institutions expressed interest in our bonds, and the volume of subscriptions submitted exceeded the offer value almost five-fold. The price at which we sold these securities on the European market is one of the lowest achieved by issuers from Central and Eastern Europe since the outbreak of the conflict with Iran." This demonstrates that PKO Bank Hipoteczny's covered bonds are attractive securities with a low risk profile for international investors," says Wojciech Papierak, CEO of PKO Bank Hipoteczny. The margin achieved in the offering was 38 basis points above the midswap rate[1] (during the previous EUR issue in June 2025, it was 45 basis points).

Nearly half of the issue (49%) was taken up by investors from Germany, Austria, and Switzerland. Renowned investors from the Nordic countries took up 19%, 11% of the offered covered bonds were allocated to institutions from the Benelux countries, and 9% from Italy. Approximately 2% of the issue was taken up by institutions from Central and Eastern Europe. Almost half of these were investment funds (47%), and almost 40% were commercial banks. Two central banks were also among the investors.

Second Covered Bond Issue in Poland This Year

This year, no mortgage bank operating in Poland – other than PKO Bank Hipoteczny – has issued mortgage covered bonds. PKO Bank Hipoteczny's offering of covered bonds on April 14, 2026, is therefore the second in Poland this year (PKO Bank Hipoteczny also conducted the first, an issue of mortgage covered bonds aimed at retail investors with a nominal value of PLN 1 billion).

"We are the only mortgage bank in Poland that can issue covered bonds for institutions in EUR and PLN, as well as for retail clients in PLN. We want to issue mortgage covered bonds on both the Polish and European markets, depending on our needs and the situation on the financial markets. We will use the proceeds from these issues to finance mortgage loans," says CEO Wojciech Papierak.

The bonds will be listed on the Luxembourg Stock Exchange.

Danske Bank acted as the global coordinator for the EUR issue. UniCredit, Societe Generale, Helaba, and PKO BP also participated. White & Case served as legal advisor.

PKO Bank Hipoteczny's covered bonds issued on April 14 will soon receive a Moody's rating. The EUR-denominated bonds issued in June 2025 already have a rating – they received an Aa1 rating, the highest rating that Polish debt securities can receive.

The covered bonds will be issued under PKO Bank Hipoteczny's International Covered Bond Issue Program (EMTN), addressed to qualified investors, based on a base prospectus approved by the Luxembourg Financial Sector Surveillance Commission on June 6, 2025. They will be listed on the regulated market operated by the Luxembourg Stock Exchange.

About PKO Bank Hipoteczny

• The offering, conducted on April 14, 2026, is the 35th in PKO Bank Hipoteczny's history.
• To date, PKO Bank Hipoteczny has issued mortgage bonds with a total nominal value of nearly PLN 30 billion.
• The primary collateral for PKO Bank Hipoteczny's covered bonds is high-quality mortgage loans.
• PKO Bank Hipoteczny maintains the collateral for its covered bonds at a level higher than required by regulations (including the Act of August 7, 1997, on Covered Bonds and Mortgage Banks).

[1] Mid-swap is the price that is the midpoint between the bid price and the offer price in swap transactions.