Huge interest and excellent issue terms of Eurobonds of PKO Bank Polski in CHF

PKO Bank Polski places securities with a maturity period of 4 years. Funds procured from the issue constitute a supplement for stable, long-term sources of financing in foreign currencies, allowing for their further diversification.

“We are very happy with today’s issue. In the evaluation of our partners, this is a clear success of PKO Bank Polski on the international market of debt securities. The volume of demand is the actual confirmation of high credibility that PKO Bank Polski enjoys as an issuer both among domestic and foreign investors. The terms on which the issue was placed are very attractive for us. The price of earned funds amounted to only 58 bps above MidSwap and is lower by over 160 bps than the previous cheapest issue in the Swiss currency accomplished by PKO Bank Polski in the past, as well as lower by 7 bps than the margin accomplished recently on the EUR issue. By procuring liquidity in foreign currencies at such attractive financial cost, we are aiming for optimum and increasingly efficient structure of our balance sheet. This is possible on account of the fact that the development strategy pursued by PKO Bank Polski, as well as the perspectives of the entire Polish economy, are positively evaluated by the investors,” says Jakub Papierski, Deputy President of PKO Bank Polski.

The issue arrangers were the following banks: Credit Suisse AG and UBS AG. The bonds will be listed on SIX Suisse stock exchange in Zurich.

This is the second issue as part of the new EMTN programme, launched in May 2017, for the total amount of EUR 3 billion. As part of the programme, issue of unsecured senior type Eurobonds, and subordinated bonds in euros, American dollars, Swiss francs and Polish zlotys will be possible. Funds procured from the issue of Eurobonds will be assigned for purposes related to general business operation of the Bank.  In July, PKO Bank Polski issued Eurobonds for the amount of PLN 750 million euro. The valuation amounted to 65 base points above the average swap rate, and coupon to 0.75%.

The initial rating of EMTN, granted by Moody’s for securities issued as part of the programme, was specified on the A3 level for unsecured debt (Senior Notes) and P-2 for the short-term debt.

PKO Bank Polski has been present on foreign markets with debt issues since 2010; during this period, it has placed issues in EUR for the amount of almost EUR 2 billion, in USD for the amount of USD 1 billion and in CHF for the amount of CHF 750 million. Success of these issues confirms high creditworthiness of PKO Bank Polski.

PKO Bank Hipoteczny has also been present on the European debt market; in 2016, it carried out the first benchmark issue of mortgage bonds denominated in euro with the nominal value of EUR 500 million in the history of the Polish market and in March and September 2017, it placed two issues of mortgage bonds with the value of EUR 500 million each, as part of the international programme of issue of mortgage bonds. Mortgage bonds may be listed in parallel on stock exchanges in Luxembourg and Warsaw.

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PKO Bank Polski is the indisputable leader in the Polish banking sector. In the second quarter of 2017, its’ consolidated net profit amounted to PLN 827 million and the value of assets reached PLN 286.4 billion. Throughout 2016, the Capital Group generated PLN 2.87 billion profit, which was the best result in the financial sector. The Bank is the basic supplier of financial services for all segments of clients, having the highest shares in the market of deposits (17.1%) and loans (17.8%), including mortgage loans; almost every third loan is granted by PKO Bank Polski and PKO Bank Hipoteczny. Having over 8 million pay cards, the Bank is the largest issuer of debit and credit cards in Poland with a market share on the level of 21.2%. Thanks to the development of digital tools, including IKO, which has been activated almost 1.5 million of times, PKO Bank Polski has become the most mobile bank in Poland. The Capital Group companies reinforce the Bank’s strong position. PKO Bank Polski Brokerage House is the leader with respect to the number and the value of IPO and SPO transactions on the capital market. Thanks to the take-over of Raiffeisen-Leasing Polska, the Capital Group became a leader on the lease market, with a share on the level of 12.3%. Efficient performance of growth strategy has resulted in the fact that PKO Bank Polski is the best positioned domestic financial company in the Forbes Global 2000 ranking, encompassing largest stock exchange companies in the world. In 2016, The Banker monthly magazine which belongs to the Financial Times, awarded PKO Bank Polski with the “Bank of the Year in Poland” prize for the third time.