Series C bond issue a great success
Investor interest in PKN ORLEN's retail bonds has surpassed all expectations – the Series C debt securities, with a total par value of PLN 200m, were significantly oversubscribed on the first day of the subscription period. Retail investors represented the majority of investors interested in purchasing the bonds. Given the huge demand and an expected large reduction in subscription orders, the Company is already considering the issue of another bond series.
The pool of 2 million Series C bonds was fully subscribed for by the end of the first day of the subscription period, leading to an early closure. Undoubtedly, investors found the terms of the offering very attractive – a variable interest rate based on 6M WIBOR plus a margin of 1.4%, and interest payments every six months. The Series C bonds were subscribed for by twice as many retail investors as the Series A bond issue carried out in May 2013.
The Series C retail bonds will be redeemed in four years, but the Company also intends to introduce this third bond series to trading on the Catalyst Market of the Warsaw Stock Exchange.
"The success of our third series of retail bonds is, first and foremost, an indication of investors' trust, and shows that our intense effort to build the popularity of debt securities offered by reliable issuers, such as PKN ORLEN, has proved effective. We are happy to broaden the spectrum of retail investors, while creating an attractive and stable source of liquidity for the continued dynamic development of the Company. In response to investor expectations, we are not ruling out the issuance of another bond series in the near future," said Jacek Krawiec, President of the PKN ORLEN Management Board. "The success of our bonds has definitely been helped by the fact that last week we regained an investment rating from Moody’s Investors, after four years. The rating agency took particular note of PKN ORLEN'S steady deleveraging and sustainable investment policy. This is akin to Fitch Ratings' August assessment, which also upgraded PKN ORLEN's rating to the investment grade," President Krawiec added.
Fitch Ratings has also assigned a high national rating of A-(pol) to the Series C bonds.
PKN ORLEN's partners in all three bond issues include: UniCredit CAIB Poland S.A., Dom Maklerski PKO Banku Polskiego and Bank Pekao S.A., as well as the following distributors: Centralny Dom Maklerski Pekao S.A., Dom Maklerski Pekao, Dom Inwestycyjny Xelion and Dom Maklerski PKO Banku Polskiego.
