Bank Pekao SA has successfully placed its Tier 2 subordinated eurobonds with a total nominal value of €500 million. The bonds were priced at 155 basis points above the average swap rate, and strong investor demand resulted in a reduction rate of 64.93%.
This marks another series of debt securities issued by Pekao on the euro market under its €5 billion Euro Medium Term Note (EMTN) programme.
“This transaction serves to further optimise and diversify the foreign-currency structure of our capital base and significantly strengthens Bank Pekao’s own funds and its MREL position. We took advantage of favourable market conditions, thereby concluding this year’s activity on the euro market with three transactions, each worth 500 million euros,” said Paweł Opolski, Director of the Capital Allocation and Asset-Liability Management Department at Bank Pekao.
The eurobonds will be issued for a period of 10 years and 3 months, with a maturity date of 27 February 2036, but may be redeemed early by the bank after 5 years and 3 months from the issue date.
“Narrowing the final pricing from 195 to 155 basis points—i.e., by 40 basis points compared to the market-standard 20–25 points—can be considered a major success for the syndicate, with the Pekao DCM team playing a key role,” said Piotr Wochniak, Head of the Financial Markets Department at Pekao.
“A consistent dialogue with investors allows us to remain a frequent issuer on the euro market, and our funding terms are rapidly converging towards those of the largest Western European banks,” added Marcin Jabłczyński, Head of the Investor Relations and Shareholder Cooperation Department.
Upon receiving approval from the Polish Financial Supervision Authority, the eurobonds will be classified as the bank’s Tier 2 instruments. They are expected to be admitted to trading on the regulated markets of the Luxembourg Stock Exchange and the Warsaw Stock Exchange and listed on the official list of the Luxembourg Stock Exchange.
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 338 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.
