Debt securities in issue

Accounting policies

Securities in issue are measured at amortized cost using the effective interest rate, or in respect of banking securities at fair value through profit or loss.

If no future cash flow schedule can be determined for a financial liability measured at amortized cost, and thus the effective interest rate cannot be determined, this liability is measured at the amount due.

Financial information

 

   

Information on the issue, redemption and repayment of securities

 

In 2017, there were the following issues, redemptions and repayments of securities in the PKO Bank Polski SA Group:

Relating to the issue of bonds by PKO Bank Polski SA

In 2017, the Bank issued banking bonds with a nominal value of PLN 1,320 million, and Eurobonds with a nominal value of EUR 750 million, and Eurobonds with a nominal value of CHF 400 million, and at the same time, it repurchased EUR banking bonds of EUR 200 million and PLN banking bonds of PLN 1,485 million.

The Bank held two issues of Eurobonds:

• On 18 July 2017, the Bank issued 4-year Eurobonds of EUR 750 million with the 0.75% coupon (Mid Swap+65 b.p.). The bonds are listed on the Luxembourg Securities Exchange and on the Warsaw Securities Exchange. This issue is the first one held under the new EMTN programme launched in May 2017 for a total of EUR 3 billion. The programme provides for the issue of unsecured senior Eurobonds and subordinated bonds in EUR, USD, CHF and PLN.
• On 19 October 2017, the Bank placed its Eurobonds under the EMTN programme amounting to CHF 400 million, with 4-year maturity and 0.300% coupon (Mid Swap + 58 p.b.). The bonds are listed on the Zurich Securities Exchange.. The Bank aims at introducing the bonds to alternative trading on the Warsaw Securities Exchange.

In 2016, the Bank issued banking bonds in EUR with a nominal value of EUR 200 million, and redeemed banking securities with a nominal value of PLN 1,860 million and EUR banking bonds with a nominal value of EUR 200 million. These bonds are measured at amortized cost.

Bonds issued by PKO Bank Polski SA

   

Relating to the issue of mortgage-covered bonds by PKO Bank Hipoteczny SA

PKO Bank Hipoteczny SA carried out issues of mortgage-covered bonds, including:

• three domestic issues in PLN addressed to institutional investors, with a total nominal value of PLN 1,265 million; mortgage-covered bonds were purchased by investors at a price equal to their nominal value, and are listed on the Warsaw Securities Exchange;
• two foreign issues in EUR addressed to institutional investors, with a total nominal value of EUR 1,000 million; mortgage-covered bonds were purchased by investors at a price lower than their nominal value, and are listed on the Securities Exchanges in Luxembourg and Warsaw;
• two foreign private placements in EUR addressed to institutional investors, with a total nominal value of EUR 79 million; mortgage-covered bonds were purchased by investors at a price equal to their nominal value, and are listed on the Luxembourg Securities Exchange;

Relating to the issue of bonds by members of the PKO Bank Polski SA Group

• PKO Bank Hipoteczny SA issued 61,888 bonds with a total nominal value of PLN 6,189 million, and redeemed 49,046 bonds with a total nominal value of PLN 4,905 million. Issues of the company’s bonds are governed by the Bond Issue Programme Agreement concluded with PKO Bank Polski SA.
• PKO Leasing SA issued 1,040,880 bonds with a total nominal value of PLN 1,041 million, and redeemed 961,591 bonds with a total nominal value of PLN 962 million. Issues of the company’s bonds are governed by the Bond Issue Agreement concluded with PKO Bank Polski SA.
• PKO Leasing SA (legal successor of Raiffeisen-Leasing Polska SA) repurchased earlier, at the request of Raiffeisen Bank Polska SA, 2,270 bonds with a total nominal value of PLN 227 million. The payment was financed from the funds received from PKO Bank Polski SA as part of the loan, based on an agreement concluded in December 2016.
• KREDOBANK SA issued 250,000 bonds with a total nominal value of UAH 250 million, and redeemed 245,300 bonds with a total nominal value of UAH 245 million.

Bonds issued by the PKO Leasing SA Group

  

Bonds issued by PKO Finance AB

     

Bonds issued by PKO Bank Hipoteczny SA

   

Mortgage-covered bonds issued by PKO Bank Hipoteczny SA