Eurobond issue tranche denominated in Swiss Francs awarded high ratings

In August 2012 PKO Bank Polski issued Eurobonds in an amount of CHF 400 million; subsequently issuing additional notes in an amount of CHF 100 million on TAP, i.e. with employment of a mechanism allowing issuance of an additional amount from a past issue. Thus, the Bank placed a total of CHF 500 million on the bond market, which represented the highest value corporate issue out of Central and Eastern Europe to date.

The distinctive features of the CHF 400 million issue included the very favourable price parameters and the minimal premium it achieved as a return fundraising. These represented the most attractive terms ever achieved by a Polish corporate. The Bank sold the additional 100 million Swiss franc bond at an even better price; issuing it above its nominal value - at 100.25, which translated into a spread of 230.9 basis points, or 9 points below that of the original book opening.

At present, debt financing costs are significantly lower for PKO Bank Polski than for many international financial institutions, e.g. for Santander or Unicredit, who had recently sold their debt issues at substantially higher spreads.

The bonds were issued as part of an Euro Medium Term Note programme established by PKO Finance AB for the benefit of PKO Bank Polski. The unsecured debt issued under the EMTN programme carries A- rating assigned by Standard and Poor’s and A2 assigned it by Moody’s.

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PKO Bank Polski is a Polish banking sector leader. Its consolidated net profit for the first half of 2012 totalled PLN1.95 billion. The bank has been regularly recognised in prestigious industry rankings.  It received the Bank of the Year in Poland honour award of The Banker international monthly.  Its financial results and comprehensive modernisation effort met with recognition. The Polish Accountancy and Tax Institute honoured the PKO Bank Polski Annual Report for the Year 2010 with the Grand Prize in The Best Annual Report competition, in the Banks and Financial Institutions category. The Bank was recognised, among other things, for its balance sheet total growth rate and its overall market activity. Additionally, Gazeta Bankowa named the bank the Highest Effectiveness entity in its category. PKO Bank Polski once again ranked the highest in ARC Market and Opinion’s survey of bank call-centre help-lines.

PKO Bank Polski is the country’s strongest image bank in Poland. It is also the highest value brand in the Polish banking market. Experts of The Banker magazine assessed its value at USD1.5 billion while the Polish Brands 2011 ranking of the Rzeczpospolita daily valued it at PLN3.75 billion. According to Newsweek’s 100 Most Valuable Firms ranking, it is also the highest value domestic bank. Philanthropic activities of PKO Bank Polski met with recognition of the Academy for the Development of Philanthropy in Poland, which granted the Bank and its Inteligo Financial Services the Benefactor of the Year 2010 statuette, and of the Polish Donors Forum, which granted the Bank the Special Award for its longstanding and consistent support of public interest causes. The Bank is counted among the best banking sector employers; so indicate the key league tables complied based on opinion pools held among students. Its high position in this respect has been further validated through surveys ran by the Universum Global international researchers and the AIESEC association among students of the country’s best universities.