Issue of the first Eurobonds tranche of PKO Bank Polski successfully completed

Demand for the first tranche of Eurobonds of PKO Bank Polski, issued within the EMTN program, was large and significantly exceeded 1 billion Euro. Investors who, apart from domestic ones, were mainly institutions from Germany, Austria, Belgium, Holland and Luxemburg, have applied for over 100 subscriptions.

- Taking advantage of the improvement of the situation on the debt market, we managed to place the issue under convenient price conditions. We would like PKO Bank Polski to be present on European markets; thus, we do not exclude further issues in future – says Zbigniew Jagiełło, the Board President of PKO Bank Polski.

At the end of September 2010, the Management Board of PKO Bank Polski passed a resolution determining terms and conditions of the first tranche within the issue program of Eurobonds (EMTN) according to which the Bank shall issue unsubordinated debt securities through its subsidiary PKO Finance AB.

The rating of bonds according to Moody’s Agency is A2. The face value of one bond amounts to 50 thousand euro. Bonds shall be listed on the stock market in Luxemburg. Funds raised from the issue shall be allocated to diversify the financing sources and to provide further development of the credit campaign.

- The success of the debut issue of Eurobonds proves the Bank is able to use capital markets effectively also in the debt financing segment, which enables to diversify sources of the Bank’s financing – stresses Jakub Papierski, Vice President of the Board of Managers of PKO Bank Polski.

The final valuation of Eurobonds amounted to 185 basis points over the midswap rate with the interest rate of 3.733 percent. It is the most profitably placed issue by a Polish issuer (excluding the State Treasury). Markets offer comparable costs of financing to such banks as Santander, BBVA, Banco Popolare as well as to some German institutions.

Arrangers of the issue were HSBC and Société Générale as well as PKO Bank Polski.

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PKO Bank Polski is theleader of the Polish banking sector in regard to financial results. After the first half of 2010 it reached the highest net profit in the branch amounting to 1.6 billion PLN. With 28 percent contribution in the market the Bank also has a leading position in the sale of loans, offering, apart from traditional commercial mortgages, preferential housing credit with state subsidy. PKO Bank Polski has been awarded several times in prestigious rankings. According to independent financial advisors Open Finance, it took first place in the quality assessment of credits in PLN and Euro. The offer of mortgage credit, in regard to the compliance to untypical expectations of customers, has been appreciated as the best on the market by the financial comparison portal Comperia.pl. The Bank has also been recognised for the flexibility of its offers of credit that may be granted to finance various purposes. The Bank is also the prize winner of the “Golden Banker” for the best mortgage credit on the market, as well as winner of the competition “Entrepreneur-friendly Bank” and holder of the certificate “Customer-friendly company”. According to the most recent analyses by the research company Millward Brown SMG/KRC, PKO Bank Polski enjoys the highest confidence among the analyzed financial institutions – 3/4 of respondents to the poll trust its financial stability. PKO Bank Polski also has the strongest image of banks in the country, shown by its leading position in the ranking “Top Brand” according to the magazine “Press”. It is also the most expensive brand on the Polish banking market – specialists from the magazine “The Banker” priced its value to one billion USD.