Polish Development Fund sold bonds for PLN 12 billion

Today, the Polish Development Fund issued further bonds under the government's Financial Shield of the Polish Development Fund for companies and employees.The banks acquired the entire pool of 7-year bonds worth PLN 10 billion. 10-year bonds worth PLN 2 billion were acquired by PZU Życie S.A. In total, the PFR has already sold bonds with a nominal value of PLN 62 billion.

On Friday, the Polish Development Fund issued, as part of the bond issue programme with a total value of up to PLN 100 billion, 7-year bonds with a nominal value of PLN 10 billion and 10-year bonds with a value of PLN 2 billion. Together with previous issues, PFR issued bonds worth PLN 62 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 7-year bonds bear interest at 1.75% per annum, and their maturity date is set for 7 June 2027 . The 10-year bonds covered by PZU Życie S.A. have a yield of 2.04%, and are redeemable on 5 March 2030 The bond yields were 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 bonds issued by BGK bank.

The funds obtained by PFR from the issue will be entirely allocated for the implementation of the governmental financial support programme for entrepreneurs in connection with the negative effects of COVID-19.The legal basis for the issue of bonds by PFR is Article 21aa of the Act on the system of development institutions.

After 4- and 5-year bond issues, the time has come to issue bonds with longer maturities. We are pleased that the market continues to respond positively to our investment offer. This is particularly important a few days before the last stage of the programme implementation is launched, this time the part of it that is addressed to large companies

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

I am very pleased that once again we are achieving our goals related to obtaining financing for the implementation of the shield. Our emissions are correlated with our spending. We are happy to see that the funds are being raised quickly for the beneficiaries. I would like to thank our dealers – bank PKO BP and Pekao SA as well as other banks peforming the function of dealers of the day

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

As part of the government's programme, the PFR provides support for 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.