Rafał Kozłowski, CEO of PKO Bank Hipoteczny, said: PKO Bank Hipoteczny consistently continues to diversify funding sources of the PKO Bank Polski Group. The next benchmark polish zloty- denominated covered bond issue further strengthen our strategic position of a regular issuer on domestic market. We are pleased that our another issue of covered bonds has met with interest among investors.
21 investors subscribed for a total of PLN 645 million which was 29% oversubscribed. They came from 6 European countries. Domestic investors took almost 67% of the issue.
| Type of investors | Share |
| Pension Funds | 37% |
| Mutal Funds/AM | 31% |
| Banks | 29% |
| Insurers | 2% |
PKO Bank Hipoteczny is the most active covered bond issuer in Poland. In 2016 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. In the first quarter of 2017 PKO Bank Hipoteczny issued Euro-denominated covered bonds with a nominal value of 525 million euro.
The forth series of Polish zloty-denominated covered bonds is a part of PKO Bank Hipoteczny’s Covered Bonds Issuance Program targeting the domestic market, on the basis of the Base Prospectus approved by Poland’s Financial Supervision Authority (KNF) on 12 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 22 March 2017. Covered bonds are a type of debt instruments secured by payments on mortgage loans, and constitute one of the world’s safest financial instruments. PKO Bank Hipoteczny’s covered bonds are secured solely by Polish zloty-denominated housing loans.
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PKO Bank Hipoteczny is 100% owned by PKO Bank Polski, and specialises in PLN-denominated residential mortgage loans. PKO Bank Hipoteczny's main goal is to provide 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 its operations in April 2015.