Polish BGK bank offered bonds worth EUR 500 million with over EUR 900 million in demand

Bank Gospodarstwa Krajowego (BGK) has valued 7-year bonds denominated in euro issued for the COVID-19 Countermeasure Fund. The nominal value of the bond issue will be EUR 500 million, with reported demand from investors at over EUR 900 million, the bank said. The bonds will be issued on October 13, 2021 and will be listed on the Luxembourg Stock Exchange.

"The great interest in the transaction shows that foreign investors perceive the Polish economy as strong and stable. Our offer has met with the interest of investors from countries that have not participated in BGK issues so far. This shows that investors positively assess our actions. We significantly increased our activity in During the pandemic period - development banks such as BGK act counter-cyclically and react to changes in macroeconomic indicators. By financing economic support programs, we are implementing our mission to support sustainable socio-economic development," said Paweł Nierada, BGK's first vice-president.

In the bookbuilding process, 55 investors submitted bond purchase declarations, which were valued at a margin of 45 basis points above the EUR Mid-Swap rate. Bonds worth EUR 500 million were allocated to investors from 19 countries. The book of demand was co-kept by the following banks: Citigroup, Commerzbank, ING Bank N.V, PKO Bank Polski and Banco Santander.

This is the second overseas issue for the COVID-19 Countermeasure Fund (FPC).

The value of issued and outstanding bonds for FPC will amount to nearly PLN 137 billion, including the foreign issue, the bank said

BGK is a state development bank that initiates and implements programs aimed at economic growth in Poland, cooperating with all development institutions, such as PFR, KUKE, PAIH, PARP and ARP. By implementing strategic development projects, BGK finances, inter alia, the largest infrastructure investments, increases Poles' access to housing and stimulates entrepreneurship of Polish companies in the country and abroad. He is an investor in funds whose assets are managed by the Polish Development Fund. In 2018, it began its expansion by opening foreign representative offices.

Source: BGK and ISBnews