On 30 June 2017 PZU issued subordinated bonds. The aggregate principal amount of the bonds is PLN 2.25 bln. The principal amount of one Bond is PLN 100. The maturity date of the Bonds falls on 29 July 2027. The bonds bear interest at a floating interest rate being a sum of WIBOR for six-month deposits and margin of 1.8%.
Tomasz Kulik, CFO of PZU, said: “We have successfully placed the largest issuance of subordinated bonds in the history of the Polish financial sector. Thanks to its simple structure as well as the issuance being based on Polish law, it may serve as an example of a funding source for other domestic companies. We positively assess the increased investor interest, which was greater than expected, as well as the realised funding costs of the issuance. As a result, we will be able to keep a strong capital position which guarantees the security and stability of our business.”
As the insurer said, the proceeds of the issue of bonds are included in PZU’s Tier 2 basic own funds under Art. 245 ff. of the Act on Insurance and Reinsurance Activity dated 11 September 2015 and Art. 72 ff. of the Commission Delegated Regulation (EU) 2015/35 of 10 October 2014 supplementing Directive 2009/138/EC of the European Parliament and of the Council on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II).
The PZU Group is one of Poland’s largest financial services companies and the leading insurance group in central and eastern Europe, listed on the Warsaw Stock Exchange with a market capitalisation of PLN 39.4 billion (€9.3 billion equivalent) as of June 2017, consolidated gross written premiums of PLN 20.2 billion (€4.6 billion equivalent) and total assets of PLN 125.3 billion (€28.3 billion equivalent) in 2016. Poland’s State Treasury is the single largest shareholder with 34.2 per cent of total capital.
