Polish Development Fund sold bonds for over PLN 15 billion

Today, the Polish Development Fund sold further bonds to banks under the government's Financial Shield of the Polish Development Fund for companies and employees.Today's limit of 5-year bonds – PLN 15.175 billion – has been covered in full.This is the third issue since 27 April.In total, the PFR has already sold bonds with a nominal value of PLN 50 billion i.e. the bond issue programme reached its halfway point after 3 weeks.

On Friday, the Polish Development Fund issued , under the bond issue program with a total value of up to PLN 100 billion, 5-year bonds with a nominal value of PLN 15.175 billion.Together with the previous two issues, the PFR issued bonds worth PLN 50 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.The bonds bear an annual interest rate of 1.625% and a maturity date of 22 September 2025.Their profitability was determined on the basis of the valuation of treasury bonds with a similar maturity increased by 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.

After today's issue, we are already at the halfway point of raising funds for the implementation of the government's Shield programme. We are pleased that these funds quickly reach the requesting entrepreneurs. Another Programme is about to be launched – this time addressed to large companies, so there will be  no shortages of challenges both in terms of raising funds and their efficient distribution. After a month of practical experience, we can see that the Programme, created in such difficult conditions and at such an unprecedented pace, is working in all key aspects.

- said Paweł Borys, President of the Management Board of the PFR.

I am very happy that this is the third time we have crossed the PLN 15 billion threshold, so we have implemented our plan for this month! The system of distribution of funds to entrepreneurs had a small safety buffer during all this hot time so it could run smoothly, and this was our second goal for this month. 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.

- said Bartłomiej Pawlak, Vice President of the Management Board 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.