PKO Bank Polski has issued 5-years long Eurobonds of the value of 800 million Euro. The final valuation amounted to 185 basis points over the midswap rate. The interest rate was 3,733 percent. It is the most profitably placed issue by a Polish issuer, apart from State Treasury bonds issues. The demand for the first tranche of Eurobonds of PKO Bank Polski, issued within 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 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 subsequent issues in future – says Zbigniew Jagiełło, the Board President of PKO Bank Polski. At the end of September 2010, the Board of Managers 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. Financial means 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 to be able to use capital markets effectively also in the debt financing segment which enables to diversity sources of the Bank’s financing – stresses Jakub Papierski, Vice President of the Board of Managers of PKO Bank Polski. 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.
