Conclusion of a synthetic securitisation transaction

The Management Board of Bank Millennium S.A. (“Bank”) informs that on December 23, 2024 it concluded a synthetic securitisation transaction of a portfolio of loans to small and medium sized enterprises (SME) and corporates with a total nominal value of PLN 2,135 million as at 31st of October 2024 (“Transaction”).

As part of the Transaction, the Bank transferred to the investor – the European Bank for Reconstruction and Development (“EBRD”) - a significant part of the credit risk from the selected portfolio subject to securitisation. The selected loan portfolio covered by the securitisation remains on the Bank's balance sheet. The transfer of the risk of the securitised portfolio is carried out through a credit protection instrument in the form of a financial guarantee issued by the EBRD.

The Bank has an option of increasing the nominal amount of the Transaction up to the maximum amount of PLN 4,057 million (Ramp-up Option).

The estimated positive impact of the Transaction on the Common Equity Tier 1 Ratio (CET1) of Bank Millennium S.A. Group is approximately 30 basis points in relation to the data reported at the end of the third quarter of 2024.

The transaction meets the requirements for significant risk transfer set out in the CRR Regulation and has been structured as meeting the STS criteria (simple, transparent and standardised securitisation) in accordance with Regulation (EU) 2021/557 of the European Parliament and of the Council.

Legal basis:
Article 17(1) of MAR - inside information.