Report No. 4/2018

Legal basis:

Article 17.1 of MAR – confidential information

Content of the report:

With reference to Report No. 1/2018, the Management Board of PKO Bank Polski S.A. (the “Bank”) hereby announces that, on 28 February 2018, the Bank  has placed subordinated bonds (the “Issue”).

Below, the Bank provides detailed information about placed Issue:

1) the settlement of the Issue will be carried out on 5 March, 2018 (“Issue Date”),
2) the total nominal value of the bonds  will be PLN 1 000 000 000,
3) the bonds will be issued under the terms of the Bonds Act, whilst the proceeds from the Issue shall, pending approval from the Polish Financial Supervision Authority’s (the “PFSA”), be used to augment the Bank’s supplementary funds under the terms of Article 127 par. 2 pt. 2 of the Banking Act, and Article 63 of the Regulation (EU) No. 575/2013 of the European Parliament and of the Council of 26 June 2013. The Bank will inform in a separate report about receiving the PFSA consent to use the proceeds obtained from the issue of subordinated bonds for increasing the supplementary funds of the Bank,
4) the Issue  will be carried out in 10NC5 format, i.e., with a maturity of 10 years, whereby the Bank has the right to redeem prematurely all the shares in the Issue (the “call option”) within five years from the Issue Date, pending approval from the PFSA,
5) the nominal value of one bond will be PLN 500 000,
6) the issue price of the bonds will be equal to the nominal value of the bonds,
7) the bonds will bear interest in half-yearly interest periods, the interest on the bonds being calculated on the nominal value according to a variable interest rate equal to the WIBOR 6M+ rate, increased by a margin equal to 150 bp. per annum throughout the Issue period,
8) the performance under the bonds will be exclusively of a monetary kind,
9) the bonds will be unsecured,
10) the bonds will be in dematerialised form and are registered in the securities deposit maintained by Krajowy Depozyt Papierów Wartościowych S.A.,
11) the Bank will apply for the bonds to be admitted to trading on the alternative trading facility – Catalyst,
12) projections of liabilities under the bonds until their complete redemption should be estimated on the basis of statements and information provided by the Bank as a public company, in accordance with MAR Regulation and with the Act on Public Offering, Conditions for Introducing Financial Instruments to an Organised Trading System, and on Public Companies.