Polish Development Fund bonds debut on Catalyst

Three series of bonds of the Polish Development Fund with a total nominal value of PLN 50 billion were newly listed on the Warsaw Stock Exchange in the Catalyst Alternative Trading System.This is a record value among listed corporate bonds on Catalyst in the history of the WSE.These bonds were issued in April and May of this year under the government's bond issue programme with a total value of up to PLN 100 billion.

The issued bonds are secured by a State Treasury guarantee, have a maturity of 4 and 5 years and a nominal value of PLN 1 million each.These are bearer securities, in non-documentary form, dematerialised, registered in the National Depository for Securities.

The issues were carried out in connection with the PFR being entrusted by the Council of Ministers, pursuant to Article 21a(1) of the Act on the system of development institutions and the Resolution of the Council of Ministers of 27.04.2020 on the implementation of the "Government Programme - Financial Shield of the Polish Development Fund for small and medium-sized enterprises".

We have taken another important step towards the implementation of the support programme for entrepreneurs under the PFR Financial Shield. So far, we have already provided almost PLN 40 billion in subsidies for micro, small and medium-sized companies. Soon we are also expecting a notification from the European Commission for a programme addressed to large companies worth PLN 25 billion. The listing of PFR bonds on ASO Catalyst is of key importance for investors in making subsequent decisions on purchasing PFR bonds. This will enable banks to qualify these debt securities as liquid assets under the LCR (liquidity coverage ratio), so that they can be held in the liquidity portfolio of banks rather than in the investment portfolio. For the PFR, in turn, it is a greater chance to obtain another PLN 50 billion to protect the companies and workplaces of millions of Poles.

 - said Paweł Borys, President of the Polish Development Fund.

The funds obtained by the PFR from the issue are entirely earmarked for the implementation of the government's financial support programme for entrepreneurs in connection with the negative effects of COVID-19.

The importance of the state for economic development is particularly evident in crisis situations. The actions of the Polish government in fighting the crisis are spectacular.The Polish Development Fund played a key role in this process. It is the PFR that efficiently and effectively supports our companies.This week, another financial shield for large companies has been approved by the European Commission. This means that billions of zlotys will flow into our companies. Today's debut of PFR on the stock exchange in the Catalyst segment means the possibility to obtain cheaper money for further necessary investments. It is also a factor increasing the Fund's attractiveness to investors and counterparties and an excellent promotional tool.

I am glad that the Warsaw Stock Exchange can support the PFR, thus participating in the work of supporting domestic entrepreneurs.

- said Marek Dietl, PhD, President of the Warsaw Stock Exchange.

To date, the PFR has already made three successful bond issues. In the first issue, the bonds reached a value of PLN 16.3 billion, in the second they were sold for a record amount of PLN 18.5 billion, which was the largest one-off issue in the history of Poland, in the third - PLN 15.175 billion.Further issues are planned shortly.

We would like to thank investors for their trust and support in the implementation of the largest programme to date to save the Polish economy. We believe that the IPO of PFR on the WSE will open the way for existing investors to buy more bonds and convince new ones that the PFR is a reliable partner. What distinguishes the ATS from the Regulated Market is that there is no requirement to have a prospectus approved by the PFSA when introducing bonds to the ATS. This has a huge impact on the speed of the process of introducing bonds to trading. This factor causes most corporate bonds, including those issued by banks, to be listed on the ATS market. The biggest banks such as BGK, Pekao, PKO BP, Alior, ING, Santander, mBank have their bonds listed on this market, as well as large corporate issues such as KGHM, PGR, PZU, and Cyfrowy Polsat. Both quotation systems are identical, which means that investors - including institutional investors - have access to it.

- said Bartłomiej Pawlak, Vice President of the PFR, responsible for issuing bonds.

As part of the government programme, PFR is providing support for micro, small and medium-sized enterprises and large companies with funds of up to PLN 100 billion. The programme is implemented in cooperation with commercial and cooperative banks, which play a key role in the distribution of funds obtained by the PFR.