Historical perspective of Polish covered bonds issuance. Comparison of crucial final terms details.

1. Krzysztof Dubejko
Head of Treasury
mBank Hipoteczny SA
November 2017
Polish mortgage covered bonds
Historical perspective

2. Historical covered bond issues
1929 issue of Warsaw Mortgage Credit Society
Fr 50 000 000
30 years
6% p.a. semi-annual coupon
2002 issue of mBank Hipoteczny
Eur 10 000 000
7 years
6M EURIBOR + 0,75% p.a. semi-annual coupon

3. Recent covered bond issues
2017 issue of mBank Hipoteczny
Eur 100 000 000
5 years
0,612% p.a. annual coupon
2018 issue of mBank Hipoteczny
Benchmark size
Mid term (5Y-10Y)
Fixed annual coupon

4. Form
2017 20181929 2002
Bearer bond
Document presented
for each payment
Bearer bond
Document deposited
by custodian
Bearer bond
Book entry
at Polish NDS
Bearer bond
New Global Note
at Clearstream

5. Listing
2017 20181929 2002
Warsaw
Stock Exchange
Private quotes
by market maker
Regulated Market
Warsaw
Stock Exchange
and BondSpot
Regulated Market
Bourse
de Luxembourg

6. Redemption
2017 20181929 2002
Ammortized
semi-annualy
Statutory call after 5Y
Bullet payment
Statutory call after 5Y
Bullet payment
Non call
CPT upon insolvency
Bullet payment
Non call
CPT upon insolvency

7. Coupon
2017 20181929 2002
6% fixed
Semi-annual
EURIBOR + 0,75%
Semi-annual
0,612% fixed
Annual
Fixed
Annual

8. Collateral
2017 20181929 2002
Mortgage loans
up to 50% of
real property value
Full recourse to
issuer’s assets
Mortgage loans
up to 60% of
mortgage lending
value of property
Full recourse to
issuer’s assets
Mortgage loans
up to 60% of MLV of commercial property
up to 80% of MLV of residential property
Full recourse to
issuer’s assets

9. Taxation
2017 20181929 2002
Exempt from all
Polish taxes
Gross-up of
foreign stamp duty
Regular taxation
of income since 2002
Regular taxation of
income since 2002
WHT exemption
ineffective
Selling restriction
for Polish residents
Gross-up of
interest payments

10. Investor base
2017 20181929 2002
High quality debt
securities intended
for investment of
public entity funds.
Eligible collateral for
public tenders.
Intended for
professional and
institutional buyers.
EBRD as anchor
investor.
Several foreign
financial institutions.
Offered in private
placement format.
Intended for ECB
and HQLA eligibility.
Offered in
syndicated format.