PKN ORLEN to offer retail bonds on open market

PKN ORLEN once again meets the expectations of individual investors, who will be able to place orders for PKN ORLEN’s retail bonds starting from September 6th. The first series offered under the second retail bond programme will comprise two million bonds with a nominal value of PLN 200m.

The floating interest rate on the bonds will be based on 6M WIBOR plus a margin of 1% and will be payable on a semi-annual basis. At today’s quotes, this would generate an annual return of 2.81% in the first interest period. The redemption period will be four years. Investors will also be able to trade in the bonds on the Catalyst market of the Warsaw Stock Exchange. Under the programme, PKN ORLEN may issue several series of bonds with a total value of up to 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 again 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.

We can see strong market demand for issues made by reputable and trusted issuers. We have responded to this demand by launching another bond programme targeted at private investors. Although raising new finance is not our priority right now, we have decided to take advantage of the strong market conditions not seen for years, and leverage our experience in debt issues to once again offer what we consider an attractive investment opportunity. It is worth noting that this time we mainly target small investors and want to enable them to buy the largest possible pool of bonds by introducing a new allocation system - said Wojciech Jasiński, President of the PKN ORLEN Management Board.

The new bond programme features a new solution that will benefit small investors. The so-called maximum allocation procedure will be used to determine the maximum number of bonds available to each investor who has placed a subscription order. The time of indicating an intention to buy bonds during the subscription period will not be taken into account and the number of bonds ultimately acquired by an investor will depend solely on the overall demand for a bond series and on its allocation in accordance with the principle of an increased allotment relative to an order for the smallest investors. This solution will give 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.

Under its first debt securities programme run in 2013 and 2014, PKN ORLEN offered investors 10 million bonds, with a nominal value of PLN 100 each. All series issued under the programme attracted strong market interest.