Using the instrumentarium available on the Polish market, mBank Hipoteczny combined a newly issued series HPA34 with the June issue of HPA33 already quoted on the Warsaw Stock Exchange. In this way, today we obtained a security with a total nominal value of PLN 310m. The assimilation of both series of covered bonds in the depository system will take place in accordance with the Resolution of the KDPW Management Board on October 29, 2018.

Thanks to this treatment, we not only acquired six-year financing with an attractive 58bp margin over 3M WIBOR, but most of all we practically tested deposit, exchange and offer procedures in order to be able to implement tap-size issues on a larger scale in the future, as is the case in developed markets Western Europe.

This is the first assimilation of mortgage bonds in Poland, and probably the first such operation on any debt instrument listed in Warsaw.

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