Bank Millennium S A : Millennium Bank Hipoteczny's mortgage covered bonds

12.06.2024

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Millennium Bank Hipoteczny's mortgage covered bonds

Millennium Bank Hipoteczny S.A. has successfully carried out the first issue of 3-year mortgage covered bonds with a total nominal value of PLN 300 million. The issue was addressed to institutional investors. Total demand exceeded PLN 1.1 billion.

The mortgage covered bonds were issued as part of the Millennium Bank Hipoteczny Mortgage Covered Bond Issue Programme on the basis of the Base Prospectus approved by the Polish Financial Supervision Authority on 15 April 2024. These instruments have also been admitted to trading on the parallel market of the Warsaw Stock Exchange.

The covered bonds issue date was June 12, 2024, and their maturity date is June 11, 2027. The instruments were valued in the bookbuilding process at 57 basis points above the WIBOR 3M rate. 50 investors submitted declarations to purchase the offered covered bonds, and the total amount of subscriptions collected amounted to over PLN 1.1 billion.

The Covered Bonds have been assigned a rating of AA+ with a positive outlook by Fitch Ratings Ireland Limited (Frankfurt am Main).

- Millennium Bank Hipoteczny is an important entity in the Bank Millennium Group and the issues of covered bonds will allow for optimal diversification of the financing structure of our group. I am glad that the debut issue of covered bonds of Millennium Bank Hipoteczny has been well received by the market and widely interested investors - said Fernando Bicho, Deputy Chairman of the Management Board of Bank Millennium and Chairman of the Supervisory Board of Millennium Bank Hipoteczny.

- This is our first issue of covered bonds. We are very pleased with the interest of investors in this inaugural issue and the price conditions on which the transaction was carried out. This proves that investors appreciate the high quality of our loan portfolio and safe levels of capital ratios. We thank investors for their trust and hope for further transactions. At the same time, we would like to thank our partners for their support in organising the transaction - says Agata Chrzanowska, CEO of Millennium Bank Hipoteczny.

The entities involved in the transaction were Bank Millennium SA as the Organiser and Calculation Agent, the Brokerage House of Bank Millennium SA as the Investment Company and Technical Agent and Trigon Dom Maklerski SA as the Additional Investment Company. Legal advice on the establishment of the Programme and the first issue of mortgage covered bonds was provided by the law firm Allen Overy Shearman Sterling, A. Pędzich sp.k..