Bank Pekao S.A. has successfully placed another debt issue on the international market. The bank's Senior Non-Preferred (SNP) bonds have a fixed coupon of 3.75%, a face value of €500 million, and will mature in June 2031.
This is the third series of debt securities to be issued by Pekao on the Euro market, as part of its €5 billion Euro Medium Term Note (EMTN) programme. As with previous issues, the bonds will be listed on the Luxembourg and Warsaw stock exchanges.
Bank Pekao SNP bonds were priced at 165 basis points above the average swap rate. Issued for a period of six years, they offered the bank the option to redeem them after five years from the issue date. The securities were rated BBB by S&P Global Ratings Europe Limited.
“We would like to thank all our investors, including the many new bondholders who trusted Pekao and participated in the book-building process. This made the valuation of the SNP issue the most attractive for the bank of all those placed so far,” said Piotr Wochniak, Head of the Financial Markets Department at Bank Pekao.
Bank Pekao Eurobonds were oversubscribed on 28 May. Investors submitted demand worth more than €1.85 billion. The debt was allocated to asset managers (88 per cent), banks (10 per cent), and hedge funds, among others.
Bank Pekao is the top arranger of bond issues. In 2024, Bank Pekao S.A. share of the bond issuance market for customers amounted to over PLN 16 billion in nominal value across 138 series. Additionally, the bank placed almost PLN 36 billion in 68 issues for Pekao Group entities, securing its position as the clear market leader in Poland.
Bank Pekao S.A., founded in 1929, is one of the largest financial institutions in the CEE region and the second largest universal bank in Poland, with assets of PLN 333 billion. The bank has the second largest branch network in the country. It is a leader in corporate banking, serving every second among largest corporates in Poland. Pekao holds a prominent position in the market for asset management, brokerage services, and private banking. The diversified business profile of Bank Pekao is supported by a market-leading balance sheet and risk profile, reflected in the lowest risk costs, strong capital ratios, and resilience to macroeconomic conditions (Pekao is the most resilient bank in Europe, taking first place in the stress tests conducted by the EBA in 2023 among 70 banks). Since 1998, Bank Pekao has been listed on the Warsaw Stock Exchange and has been a member of several local indices (including WIG 20 and WIG) as well as international indices (including MSCI EM, Stoxx Europe 600, and FTSE Developed). Pekao is among top dividend-paying companies listed in Warsaw, with a total shareholder pay-out of above PLN 20bn over the past 10 years.
