Orlen consolidates its position on financial markets

The issue of the 7-year debt securities was carried out by a special purpose vehicle, ORLEN Capital AB, a Swedish resident wholly owned by PKN ORLEN, with the latter acting as the issue guarantor. Our intention was to fully leverage the favourable market climate, including the record-low base rate and attractive margins. PKN ORLEN is an experienced participant of financial markets, with a track record of successful issues across various markets. On this we can build our credibility and confidence among financing partners, whose response to our issue has been quite impressive, resulting in an oversubscription of more than three times. This allowed us to raise our offering to EUR 750m. This tranche of eurobonds will help extend the maturity of our debt and further diversify our financing sources - said Sławomir Jędrzejczyk, PKN ORLEN’s CFO.

Conditions for closing the transaction include conclusion of the subscription and guarantee agreements, which are to be signed within a few days, as well as approval of the prospectus. The issue proceeds will further diversify the Company’s financing sources and will be applied towards repayment of bank loans.

The issue of the debt instruments was preceded by a series of meetings between PKN ORLEN and investors in Europe’s main financial hubs, including Germany, United Kingdom, France, Austria, Switzerland and the Netherlands. BNP Paribas and Société Générale are acting as global coordinators. A group of institutions, which include BNP Paribas and Société Générale, and also Citibank, ING, PKO BP, Santander GBM and UniCredit, have contributed jointly to the success of the issue.