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PZU
PZU Group (through its 100% subsidiary, PZU Finance AB) issued Eurobonds to the total amount of EUR 850 million (download the prospectus), which are quoted on the Official List of the Irish Main Securities Market and the Catalyst ASO GPW/Bondspot market.
The quoted bond series (PZU0719) is composed of two assimilated series (under one ISIN code: XS1082661551) with nominal value of EUR 500 million and EUR 350 million issued on 3 July 2014 and 16 October 2015, respectively.
The liabilities arising from the bonds were secured by a guarantee granted by PZU.
The liabilities arising from the bonds were secured by a guarantee granted by PZU. The bonds bear interest at a fixed interest rate of 1.375% per year and the coupon is paid once a year. The redemption date falls on 3 July 2019.
The issue of Eurobonds constituted the implementation of PZU Group’s investment strategy in the scope of the management of the matching of assets and liabilities denominated in euro. The funds from the issue were planned to be used to increase the involvement of investment portfolio in investments denominated in euro, manage FX position, and use of debt financing, which is cheaper than equity.
PZU Group’s debt ratio as at 31 December 2016 amounted to 28.1%1.
PZU bond yield to maturity (YTM)
Source: Reuters
Moreover, as at 14 March 2017 PZU Supervisory Board approved the request of the PZU Management Board to the PZU General Shareholders Meeting regarding the adoption of the resolution on the issue of subordinated debt with a total par value not higher than PLN 3 bn.
Alior Bank
To ensure a secure level for the coefficients of capital adequacy, Alior Bank issues debt instruments on a regular basis.
To ensure a secure level for the coefficients of capital adequacy, Alior Bank issues debt instruments on a regular basis. As at 31 December 2016, Alior Bank enforced the following debt capital acquisition programs:
- Emission of own bonds with maximum value of PLN 2 billion;
- Public Program of Subordinated Bond Emission with maximum value of PLN 800 million.
The aforementioned Public Program of Subordinated Bond Emission saw Alior Bank issue the following in 2016:
| Series name | Abbreviated name | ISIN | Nominal series value | Currency | Issue date | Redemption date | Bond type |
| P1A | ALR0522 | PLALIOR00151 | 150,000,000 | PLN | 2016-04-27 | 2022-05-16 | subordinated |
| P1B | ALR0524 | PLALIOR00169 | 70,000,000 | PLN | 2016-04-29 | 2024-05-16 | subordinated |
As at 31 December 2016, Alior Bank held the following obligations in bond form (presented cumulatively according to issue date):
| Series name | Abbreviated name | ISIN | Nominal series value | Currency | Issue date | Redemption date | Bond type |
| B | ALR0421 | PLMRTMB00026 | 67,200,000 | PLN | 2013-04-29 | 2021-04-29 | subordinated |
| F | ALR0924 | PLALIOR00094 | 321,700,000 | PLN | 2014-09-26 | 2024-09-26 | subordinated |
| C | ALR1022 | PLMRTMB00034 | 80,000,000 | PLN | 2014-10-21 | 2022-10-21 | subordinated |
| G | ALR0321 | PLALIOR00102 | 192,950,000 | PLN | 2015-03-31 | 2021-03-31 | subordinated |
| H | ALR0617 | PLALIOR00110 | 192,800,000 | PLN | 2015-06-30 | 2017-06-30 | common |
| H1 | ALR0617 | PLALIOR00110 | 57,200,000 | PLN | 2015-06-30 | 2017-06-30 | common |
| I | ALR1221 | PLALIOR00136 | 150,000,000 | PLN | 2015-12-04 | 2021-12-06 | subordinated |
| I1 | ALR1221 | PLALIOR00136 | 33,350,000 | PLN | 2015-12-04 | 2021-12-06 | subordinated |
| EUR001 | n/a | n/a | 10,000,000 | EUR | 2016-02-04 | 2022-02-04 | subordinated |
| P1A | ALR0522 | PLALIOR00151 | 150,000,000 | PLN | 2016-04-27 | 2022-05-16 | subordinated |
| P1B | ALR0524 | PLALIOR00169 | 70,000,000 | PLN | 2016-04-29 | 2024-05-16 | subordinated |
All aforementioned subordinated bond series are qualified by Alior Bank as capital instruments of Tier II, which is discussed in art. 63 of CRR.2
1 PZU Group’s leverage ratio – quotient of the debt from long-term financial liabilities (excl. loan commitments) and the sum of: debt from long-term financial liabilities and PZU Group’s equity less: the value of intangible assets, deferred acquisition costs and deferred tax assets, which have been presented in consolidated financial statements of PZU Group.
2 Regulation (EU) No. 575/2013 of the European Parliament and the Council of 26 June 2013 on prudential requirements for credit institutions and investment companies, amending Regulation (EU) No. 648/2012 – Capital Requirements Regulation, CRR.
