Bank Pekao S.A. has successfully completed another international debt issuance, placing a new series of senior non-preferred (SNP) bonds on the euro market. The fixed-rate bonds, carrying a 3.75% annual coupon, have a nominal value of €500 million and mature in June 2031.
This marks the third issuance by Bank Pekao under its €5 billion Euro Medium Term Note (EMTN) program. As with previous series, the bonds will be listed on both the Luxembourg Stock Exchange and the Warsaw Stock Exchange.
The SNP bonds were priced at 165 basis points above the mid-swap rate. They were issued with a 6-year tenor, with a call option after 5 years, allowing the bank to redeem the bonds early. The issue has received a BBB rating from S&P Global Ratings Europe Limited.
“We would like to thank all our investors, including many new bondholders who placed their trust in Pekao and participated in the book-building process. Thanks to them, the pricing of this SNP issue is the most favorable for the bank among all of our offerings so far,” said Piotr Wochniak, Head of Financial Markets at Bank Pekao.
The book-building process took place on May 28, and the eurobond offering attracted over €1.85 billion in demand. The allocation went primarily to asset managers (88%), followed by banks (10%) and hedge funds.
Bank Pekao has solidified its position as the leading arranger of bond issues in Poland. In 2024 alone, the bank arranged 138 bond series worth over PLN 16 billion for clients. Additionally, it placed nearly PLN 36 billion across 68 issues for entities within the Pekao Group, ensuring its dominance in the Polish bond market.
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Source: ManagerPlus.pl
