Subject: Update report – summary of costs of subscription for EUR 500,000,000.00 of covered bonds under the international Covered Bond Programme of PKO Bank Hipoteczny SA
Legal basis: § 16 Ordinance of the Minister of Finance of 29 March 2018 on current and periodic information provided by the issuers of securities and on conditions under which information required by legal regulations of a third country may be recognized (current report).
Content:
With regard to the current report No 3/2019 dated 25 January 2019, the Management Board of PKO Bank Hipoteczny S.A. with its registered office in Gdynia ("the Bank") provides information about:
1) The total costs which were included in the issuance costs divided into the following categories:
a) costs of preparing and conducting the offer: PLN 4 395 539.22,
b) costs of remuneration of the underwriters (within the meaning of art. 4 sec. 12) and 13) of the Polish Act dated 29 July 2005 on the public offering and conditions of introduction of the financial instruments into the organized trading system and on public companies): N/A,
c) costs of promotion: N/A,
d) costs of prospectus and supplement preparation including advisory costs: the cost applies to all offers of covered bonds carried out under the Programme and is not allocated to individual issues.
Total expenses mentioned above paid for subscriptions of bonds amounted to PLN 4 395 539.22 gross (VAT included)
Cost recognition in the accounting records and financial statement of the issuer is as follows:
costs included in the costs of issuance of a given series of covered bonds are included in the valuation at the amortized cost of the financial instrument, and are settled in the period until maturity of a given issue in interest costs using the effective interest rate.
2) The average cost of subscription per one subscribed covered bond: PLN 879.11
It should be noted that the above average cost does not include the cost of preparing the prospectus because this item applies to all covered bonds offers carried out under the Programme of Covered Bond Issuance.
The costs were rounded to two decimal places.
Date: 01-08-2019, 16:49
SIGNATURES OF COMPANY REPRESENTATIVES
01.08.2019 Paulina Strugała, President of the Management Board
01.08.2019 Piotr Kochanek, Vice President of the Management Board