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Biggest bank PKO BP sells EUR 500mn eurobond, eyes another tranche in H2

January 19, 2014

Poland's biggest bank PKO BP has issued 5-year Eurobonds worth of EUR 500mn , while demand for the notes four times exceeded supply. This allowed the lender to lower the margin by 15bps from the original offer, to 115bps over mid-swap rate. The interest rate was 2.324%. It boasts that this was the most beneficially priced offering by a Polish corporate issuer on the international debt market. Investors filed nearly 200 orders for the bonds; 86% of investors came from Europe , over 7% from North America and over 3% - from Asia . Investment advisors took up over 41% of the tranche, mutual funds - 17%, insurers - over 10% and banks - around 9%, PKO BP reported. Lead managers of the issue were: Citigroup , Banco Santander, Societe Generale and UBS. PKO BP's vice-president responsible for investment banking Jakub Papierski declared that the bank could be ready to return to the debt market in the middle of the year or in H2 of 2014, provided that market conditions continue to be beneficial. The choice of currency to be used will be made later, he added. The issue was carried out under the lender's Euro Medium Term Note (EMTN) programme opened in 2008. So far, PKO BP placed four tranches under these scheme, totalling EUR 850mn and CHF 750mn . The programme is rates A2 by Moody's and A- by Standard & Poor's.

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Source: IntelliNews - Weekly Reports

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