Legal basis:
Article 56 par. 1 point 1 of the Act of 29 July 2005 on Public Offerings and the Conditions for Introducing Financial Instruments to the Organized Trading System and on Public Companies
The report:
The Management Board of Powszechna Kasa Oszczędności Banka Polski Spółka Akcyjna (the “Bank”) announces that on 17 July 2012 it adopted a resolution on an intended premature redemption of all subordinated bonds (the “call option”) for the total nominal value of PLN 1,600,700,000 issued by the Bank on 30 June 2007 (the “2007 Issue”); this issue having been reported in current reports no. 43/2007 and 47/2007.
Exercising the call option with respect to the 2007 Issue is dependent upon the Bank’s receipt of the required permission from the Polish Financial Supervision Authority (the “KNF”).
The Bank will promptly announce receipt of the permission from the KNF in a separate current report. At the same time, the Bank’s Management Board announces that on 17 July 2012 it adopted a resolution approving an issue of subordinated bonds (the “New Issue”) in 10NC5 format, i.e., with a maturity of 10 years, whereby the Bank has the right to redeem prematurely all the shares in the New Issue (the “call option”) within five years from the issue date, pending approval from the KNF.
The total nominal value of the shares issued under the New Issue shall not exceed PLN 1,600,700,000. The bonds shall be issued under the terms of the Bonds Act, whilst the proceeds from the New Issue shall, pending approval from the KNF, be used to augment the Bank’s supplementary funds under the terms of Article 127 par. 3 pt. 2 of the Banking Act. The nominal value of one bond shall be not less than PLN 1,000. The benefits under the bonds shall be pecuniary only. The bonds shall earn interest under market conditions at six-monthly intervals.
The interest shall be paid on the nominal value. The Bank wants the proceeds from the New Issue to replace the proceeds earned by the Bank from the 2007 Issue in connection with the intended call option regarding the 2007 Issue. Subject to prior approval from the KNF, the call option regarding the 2007 Issue shall be exercised after the New Issue. During the period between the New Issue and the call option regarding the 2007 Issue, the Bank’s total liabilities under the 2007 Issue and New Issue shall amount to PLN 3,201,400,000.
Until the final redemption of the bonds, forecasts of liabilities should be performed on the basis of the declarations and information provided by the Bank as a public company whose shares are listed on the regulated market, in the manner set forth in the Act of 29 July 2005 on Public Offerings and the Conditions for Introducing Financial Instruments to the Organized Trading System and on Public Companies.