mBank Hipoteczny issued mortgage covered bonds worth PLN 300m with a maturity of 6 years and a coupon at WIBOR3M + 0.58%.
We carried out the issue under a new distribution model based on the domestic prospectus. The book-building process was handled by mBank S.A. and Erste Group Bank AG. Through them, 23 investors submitted Covered Bond Purchase Declaration Forms for a total amount of over PLN 577m, i.e. the subscription accounted for 1.9x of the value of the offer. The bonds were purchased by asset management institutions (72%), banks (17%) and insurance companies and pension funds (12%). Investors came mainly from Poland (83%) and the Czech Republic (8%), Germany (7%) and Austria (2%).
From the perspective of mBank Hipoteczny, this has been the most favourable valuation of the issue of covered bond in PLN for 10 years:
- compared to a similar issue by the Bank in autumn 2017 – the cost is lower by 24 bps,
- compared to a similar issue by PKO Bank Hipoteczny of May 2018 – the cost is only higher by 9 bps,
- compared to the maturing six-year issue by the Bank of 2012 – the cost is lower by 111 bps.