Success of the PKO Bank Polski Group's Second Issue of Mortgage Covered Bonds for Individual Investors

• The shortened subscription period for PKO Bank Hipoteczny's second issue of mortgage covered bonds for retail investors will end on April 10, 2026 (originally scheduled for April 8-22).
• On the first day, the value of subscriptions exceeded PLN 500 million. Due to the high interest, the bank increased the offering to PLN 1 billion. The increased pool was exhausted on the second day of subscriptions.
• According to the terms of the offer, the bank can only close subscriptions on the third day. It is also obligated to reduce the subscriptions submitted by investors on the second and third days.

Further issues will follow. "We will create a new securities market for Poles."

"The enormous interest in the covered bond issue confirms investor confidence in the PKO Bank Polski Group. We want our clients to be able to choose convenient savings and investment products with a safe profile. That's why we have offered one of the safest debt securities available on the market. Its listing on the Warsaw Stock Exchange provides investors with real liquidity: the ability to both continue purchasing securities and exit their investment," emphasizes Szymon Midera, CEO of PKO Bank Polski.

"The success of the offer stems from the nature of covered bonds, which are well-secured long-term securities. They are a good investment option for the volatile times we are experiencing. We would like to launch covered bond offerings more frequently than once every six months." We want other mortgage banks to do the same. This way, we will create a new securities market for Poles," says Wojciech Papierak, President of PKO Bank Hipoteczny.

PKO Bank Hipoteczny is the only bank in Poland to offer retail mortgage covered bonds to Poles. In October 2025, individual investors acquired PLN 1.155 billion worth of covered bonds. After the April issue, PLN 1 billion worth of bonds will be added to their portfolios.

The prospectus approved by the Polish Financial Supervision Authority allows the bank to issue bonds worth PLN 10 billion over three years. Therefore, the bank announces the issuance of subsequent series for retail investors.

Second-issue covered bonds will soon debut on the Warsaw Stock Exchange

PKO Bank Hipoteczny's mortgage covered bonds are among the safest debt securities on the market. They are secured twice: by a portfolio of mortgage loans, and PKO Bank Hipoteczny guarantees their redemption with its own assets.

The nominal value of one retail note is PLN 1,000. The interest rate is the sum of the National Bank of Poland's reference rate and a margin of 0.25 percentage points (with the offer ending today and current interest rates in the first interest period being 4% per annum).

Retail investors are not required to hold the notes until they are redeemed, even though they are long-term securities. The first-issue notes are listed on the Catalyst market operated by the Warsaw Stock Exchange. The second-issue notes are likely to debut on this market within a few weeks (no later than early May 2026). This allows investors to either order their sale on the Catalyst market (which may involve transaction costs) or hold them until redeemed by PKO Bank Hipoteczny and receive interest according to the terms of the issue.

About PKO Bank Hipoteczny S.A.

Operating since 2014, it is the largest mortgage bank in Poland in terms of mortgage loans granted and covered bonds issued. Its sole shareholder is PKO Bank Polski S.A. PKO Bank Hipoteczny has issued covered bonds to investors from Poland and abroad with a total value equivalent to over PLN 26 billion (including the retail issue in April 2026, the issue value exceeds PLN 27 billion). Moody's Investors Service Cyprus Ltd. has assigned the bank a long-term credit rating of A3 with a stable outlook. Covered bonds issued by PKO Bank Hipoteczny under the International Mortgage Covered Bond Issuance Program, aimed at institutional investors, currently have a Moody's rating of Aa1. This is the highest rating that Polish corporate debt securities can receive, as it is limited by the rating of the issuer's country of domicile. The main security for covered bonds issued by PKO Bank Hipoteczny S.A. are high-quality mortgage loans.292
PKO Bank Hipoteczny S.A. maintains the security of its covered bonds at a level higher than required by applicable law. The regulations require overcollateralization of 5%, and in the case of PKO Bank Hipoteczny, the overcollateralization is 88.8% (as of February 28, 2026).