PKN ORLEN will be able to issue and offer to the public notes totalling up to PLN 1bn.
PKN ORLEN has made a decision on a possible launch of a new Note Programme. Under the Programme, the Company would be able to issue one or more series of notes totalling up to PLN 1bn within 12 months. The notes would be issued to the public and offered to a broad group of investors, including retail investors.
The decision was triggered by the great success of the PLN 1bn seven-year corporate notes programme run by PKN ORLEN last year, which was well received by the market and generated significant demand.
The notes to be issued under the new Programme will be offered on the public market to domestic investors, including retail investors. Placements of notes on the Polish market are one of the possible ways to change the financing structure of PKN ORLEN. Currently, a major portion of the Company financing is bank loans.
The notes to be issued under the Programme are to be introduced to trading on the Catalyst market. This will allow the Company to reach a broader investor universe, in line with its long-term strategy to diversify financing of its operations.
"Polish households hold about PLN 10bn in bonds and notes, and cash remaining outside bank vaults is estimated at nearly PLN 100bn. This means huge potential for further growth of the market for bonds and notes, and we would rather not miss out on this opportunity," said Sławomir Jędrzejczyk, Member of the Management Board and Chief Financial Officer at PKN ORLEN. "Debt securities issued by a company enjoying strong recognition and stable financial standing may be an attractive investment vehicle," Mr Jędrzejczyk added.
