The PZU Group has issued five-year Eurobonds with a face value of 500 million Euro. Ultimately, the margin above the mid-swap rate was 85 basis points, translating into a bond yield of 1.499%. The coupon was set at the level of 1.375% per annum. That is the lowest coupon achieved in the Central and Eastern European region and the lowest margin in the region since 2007. Standard & Poor’s awarded these bonds a preliminary rating of „A-„ for unsecured debt.
The Eurobond issuance is part of implementing the PZU Group’s investment strategy to manage Euro-denominated asset and liability matching. Subsequent to acquiring companies in Lithuania, a significant portion of PZU’s assets will depend on the Euro exchange rate and that is why the PZU Group elected to conduct an issue in this currency.
„We completed this issuance with great success thanks to conducive market conditions. Today’s issue is the best issue placed by a Polish corporate on the international market. PZU’s high rating and the PZU Group’s strategic growth plans were of no small consequence in this case. The funds obtained from this issue will constitute a stable and long-term source of funding for the PZU Group. In conjunction with pursuing our acquisition strategy, we are planning to conduct more Eurobond issues over the upcoming year. At the same time, I am glad that this issuance will form a price benchmark for future reference,” – said Przemysław Dąbrowski, PZU SA’s CFO.
PZU Finance AB issued the Eurobonds with PZU SA providing the guarantee. The issue was run by Bank of America Merrill Lynch, Citi, Deutsche Bank, Goldman Sachs and UBS.
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