Success of PKN ORLEN’s Eurobond issue

PKN ORLEN has completed the EUR 750m Eurobonds issue. The Company's debt securities with an annual coupon of 2.5% have been ranked high by Fitch Ratings (BBB-) and by Moody's Investors (Baa3).

The issue of the 7-year debt securities was carried out by a special purpose vehicle, ORLEN Capital AB, wholly owned by PKN ORLEN, with the latter acting as the issue guarantor. Upon completion of the issue, PKN ORLEN signed a guarantee agreement to secure ORLEN Capital AB's future liabilities under the Eurobonds. The guarantee will fully cover the issue, up to a limit of EUR 1.1bn. The issue proceeds 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 more than 50 investors in Europe's main financial hubs, including Germany, United Kingdom, France, Austria, Switzerland and the Netherlands. The issue attracted strong interest from investors, being the first issue of Eurobonds conducted by a non-financial issuer in more than two years. Ultimately, more than 190 investors subscribed for the Eurobonds, and the book was more than three times covered; as a result, the Company decided to increase the offering to EUR 750m. Leveraging the favourable conditions, the Company was able to achieve an attractive coupon of 2.5% per year − the same as in the 2014 issue, while the value of this year's issue was higher.

BNP Paribas and Société Générale acted as global coordinators. A group of institutions, which included BNP Paribas and Société Générale, and also Citibank, ING, PKO BP, Santander GBM and UniCredit, have contributed jointly to the success of the issue.