← Polish Development Fund Group (PFR Group)

Polish Development Fund sold bonds for a record amount of PLN 18.5 billion! It is the largest one-off bond issue in Poland.

PFR S.A.
Polish Development Fund sold bonds for a record amount of PLN 18.5 billion! It is the largest one-off bond issue in Poland.

On Friday, the Polish Development Fund issued 5-year bonds with a nominal value of PLN 18.5 billion, as part of the bond issue programme with a total value of up to PLN 100 billion. Together with the previous first issue, the PFR issued bonds worth PLN 34.8 billion.

The issue was 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 - the financial shield of the Polish Development Fund for small and medium-sized enterprises." The issued bonds are secured by a State Treasury guarantee.

Today, the Polish Development Fund has successfully placed another bond issue under the government's Financial Shield of the Polish Development Fund for companies and employees. After the first issue of 27 April worth PLN 16.3 billion, this is further proof that PFR has gained the trust of investors and that the functioning of the government programme is embedded in strong economic realities.

- said Paweł Borys, President of the PFR

The bonds bear an annual interest rate of 1.625% and their maturity date is set at 31 March 2025. Their yield was determined on the basis of the valuation of treasury bonds with a similar maturity date plus bank tax and a margin for the risk of lower liquidity than treasury bonds. The structure of the yield components is similar to the bonds issued by BGK bank.

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

The legal basis for the issuance of bonds by PFR is Article 21aa of the Act on the system of development institutions.Today's issue is the record value of a single bond issue in Poland. It confirms our belief in our ability to fulfil the task set for us by the government to finance and distribute funds worth PLN 100 billion to entrepreneurs in Poland effectively, quickly, and with due care for the economics of this process. I would like to thank all the people, from many different institutions, who made this next issue a great succes.

- said Paweł Borys, President of the PFR

I am very happy that we have once again exceeded the PLN 15 billion threshold we had assumed. We obtained a good price, comparable to similar paper securities issued on the market. I would like to thank our dealers – the banks PKO BP and Pekao SA as well as other banks acting as dealers of the day,  this time joined by ING bank. There is a strong understanding among the banks of our common goal, which is to provide an efficient vehicle for raising funds, which in the next step are quickly and efficiently distributed to companies.

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

As part of the implementation   of the Government's programme , the PFR provides support for the sector of micro, small and medium-sized enterprises and large companies with funds of up to PLN 100 billion. The PFR is implementing the programme in cooperation with commercial and cooperative banks, which play a key role in the distribution of funds obtained by the PFR for its implementation.

PFR S.A.
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