Record Issuance of Mortgage Bonds by Millennium Bank Hipoteczny

Millennium Bank Hipoteczny S.A. initially offered investors mortgage covered bonds with a maximum nominal value of PLN 500 million. Due to the high level of interest from investors, the bank decided to issue an additional tranche of instruments with identical parameters totaling PLN 300 million.

The mortgage covered bonds with a combined nominal value of PLN 800 million were issued under the Mortgage Covered Bond Issuance Program of Millennium Bank Hipoteczny S.A., based on the Base Prospectus approved by the Polish Financial Supervision Authority on April 15, 2024. The instruments have been admitted to trading on the parallel market of the Warsaw Stock Exchange.

The issuance date for the bonds was set for March 12, 2025, and their maturity date was established for March 12, 2030. The instruments were priced during the book-building process at 89 basis points above the WIBOR 3M rate, with total demand from investors reaching PLN 1.4 billion.

The mortgage covered bonds received a rating of AAA with a stable outlook from Fitch Ratings Ireland Limited (Frankfurt am Main).

This represents the third issuance of mortgage covered bonds by Millennium Bank Hipoteczny S.A. Previously, in 2024, two series of covered bonds with tenors of 3 and 5 years were issued and nominal values of PLN 300 million and PLN 500 million, respectively. With this third issuance, Millennium Bank Hipoteczny S.A. has doubled the amount of its outstanding mortgage covered bonds.

"Millennium Bank Hipoteczny S.A. has executed the largest issuance of mortgage covered bonds in its history while maintaining a five-year maturity for the instruments. The continuation of mortgage covered bond issuance plans is a significant element of the financing structure strategy of the Millennium Bank Group and fulfilment of the long term funding ratio requirement," said Fernando Bicho, Deputy Chairman of the Management Board of Millennium Bank S.A. and Chairman of the Supervisory Board of Millennium Bank Hipoteczny S.A.

"We are extremely pleased that once again, the issuance of our mortgage bonds has garnered strong interest from both existing and new investors. This has successfully allowed us to increase the total value of the planned issuance from PLN 500 million to PLN 800 million while maintaining the same pricing parameters. We thank our investors for their trust and our partners for their support in executing another successful issuance," said Agata Chrzanowska, CEO of Millennium Bank Hipoteczny S.A.

The entities involved in the transaction included Bank Millennium S.A. as the Arranger and Calculation Agent, Biuro Maklerskie Banku Millennium S.A. as the Investment Firm and Technical Agent, and Dom Maklerski Banku Ochrony Środowiska S.A. as the Additional Investment Firm. Legal advice for the third issuance of mortgage covered bonds was provided by Allen Overy Shearman Sterling, A. Pędzich sp.k..