PKN ORLEN Series A bonds in line with investors’ expectations

A total of 1,188 investors have placed subscription orders for Series A bonds offered in PKN ORLEN’s second retail bond programme, meaning the issue is more than twice oversubscribed. Today, the Company has allotted the first series of bonds with a total nominal value of PLN 200m and started to make oversubscription refunds.

The total value of orders placed by investors for the first series of retail bonds issued in the programme was in excess of PLN 429m, more than twice the value of bonds available for sale, which was PLN 200m. This means that, with a variable interest rate based on 6M WIBOR plus a margin of 1.0%, retail investors considered the offer very attractive. PKN ORLEN intends to have the bonds introduced to trading on the Catalyst Market by the end of next month.

‘First and foremost, we consider the subscription results as a sign of strong confidence from our investors. It is also a clear signal for lenders and rating agencies, bolstering our creditworthiness. We waited for the right moment to launch the offer, and it is evident that years of experience in financial markets have paid off. The success of Series A bonds demonstrates that we fully met investors’ expectations both with regard to the terms and timing of the issue,’ said Wojciech Jasiński, President of the Management Board of PKN ORLEN.

A new allotment mechanism benefiting small investors was used by PKN ORLEN in its second retail bond programme. The so-called maximum allocation procedure was used to determine the maximum number of bonds available to each investor who has placed a subscription order. Additionally, the subscription period (from September 6th to September 15th) gave all investors, including beginner and less experienced ones, the time to better understand the terms of the issue without the risk of a bond pool being sold out.

In line with the maximum allocation procedure, which was used by PKN ORLEN for the first time in a bond issue, all investors who subscribed for up to 4,237 bonds were allocated the full subscription amounts as their orders were not subject to scale back. The company has achieved its objective of supporting small investors, as each of them received a full allocation.

Under the programme, PKN ORLEN may issue bonds with a maximum total value of PLN 1bn. The parameters of each issue will be adjusted to market expectations and PKN ORLEN’s needs on an ongoing basis. The Company’s debt securities have been rated high by Fitch Ratings, with the bond programme assigned a rating of A (pol). The offering broker for the bonds is Dom Maklerski PKO Banku Polskiego.