Bank Pekao S.A. has successfully placed another international debt issue. The Bank’s senior preferred green eurobonds, carrying a fixed coupon of 3.50%, have a nominal value of €500 million and mature in September 2032.
This marks the fourth eurobond issue by Pekao on the Eurobond market under its €5 billion Euro Medium Term Note (EMTN) programme. As with the previous series, the bonds will be listed on both the Luxembourg Stock Exchange and the Warsaw Stock Exchange.
The bonds were priced at 110 basis points above the mid-swap rate. They were issued with a 7-year maturity and a call option exercisable by the bank after 6 years from issuance (7NC6). The securities received a A- rating from S&P Global Ratings Europe Limited.
“Exceptionally strong demand, exceeding €2.3 billion (PLN 10 billion), gathered within just three hours of the book-building process from nearly 150 institutional investors, once again confirms the market’s confidence in our credit quality and strategic direction. By issuing the bonds in a green format, with proceeds allocated to projects compliant with the bank’s ESG criteria, Pekao secured MREL funding with a long 7-year maturity, achieving its most favorable pricing to date on the Eurobond market,” said Piotr Wochniak, Head of the Financial Markets Department at Bank Pekao.
“This issue strengthens our position in the capital markets and enhances our international recognition across diverse geographies – from Korea and Singapore, through Europe with strong representation from the UK, France, Germany, and Poland, to U.S. investors. While this is the bank’s second green bond issuance, what deserves particular attention is our commitment to allocate part of the proceeds to ‘blue’ investments, further reinforcing Pekao’s engagement in advancing ESG goals under our sustainable development programme,” added Paweł Opolski, Head of the Capital Allocation and Asset & Liability Management Department at Bank Pekao.
The subscription for Bank Pekao’s eurobonds took place on September 16. Investors submitted demand exceeding €1.25 billion. The bonds were allocated primarily to asset managers (75%) and international financial institutions and banks (15%).
Bank Pekao ranks number one among bond issue arrangers. In 2024, Pekao’s market share in client bond issuances amounted to more than PLN 16 billion across 138 series. In addition, the bank placed nearly PLN 36 billion across 68 issuances for Pekao Group entities, securing its clear leadership position in the Polish market.
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 340 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 2025 among 64 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.
