PHN Successfully Carried Out Another Issue of Debt Instruments

Polski Holding Nieruchomości has raised PLN 125M from the issue of 3-year E-series bonds, which went to 20 investors after a nearly 50% reduction. The issue attracted strong interest from investors, who at the book-building stage made bids for about PLN 183M. Among other things, PHN Group will use the funds raised to implement its investment program. The bonds were issued under a 7-year bond issue program established in April 2019 with a total value of up to PLN 1B.

The private issue included 125,000 E-series bonds with a nominal value of PLN 1,000 each and a total nominal value of PLN 125M. The bonds will be redeemable in November 2027. Their interest rate will be based on WIBOR 6M plus a margin of 3.8%, and the coupon will be paid every six months. These are unsecured bonds. PHN will apply for the bonds to be listed on the Catalyst Alternative Trading System operated by the Warsaw Stock Exchange by the date specified in the terms of issue.

“The E-series bond offering met with great interest from the market. Such high oversubscription on the part of investors confirms that they see the positive changes at PHN Group and have confidence in our plans. The success of this issue takes on special significance if we take into account the high competition from other issuers and the margin achieved in the process. I am glad that we have been appreciated by investors. This is encouraging when planning future investments, for which we will need capital,” said Grzegorz Grotek, Member of the Management Board for Finance, Polski Holding Nieruchomości S.A.

“Investors have appreciated the company’s strengths, such as its low debt level, portfolio of real estate and new projects, experience in the market, and stable ownership structure with the Treasury as the main shareholder. All this made it possible to obtain favorable terms for the new bond issue, including a reduction in the interest margin, both compared to the previous issue and the original market expectation,” said Ilona Wołyniec, Head of Strategic Customer Relations and Project Finance Division at PKO Bank Polski, which is the leader of the consortium organizing the issue.

The banks handling the bond issue program are: PKO Bank Polski S.A., Bank Pekao S.A., BNP Paribas Bank Polska S.A. and Santander Bank Polska S.A. and mBank S.A.

***

ABOUT THE PHN GROUP

Polski Holding Nieruchomości S.A. is one of the largest groups in the Polish commercial property sector in terms of the market value of its portfolio. PHN Group has a diversified business profile – it is primarily active in the office, residential and logistics markets. PHN Group’s portfolio comprises more than 150 standalone properties with a market value of approx. PLN 3.5B. PHN Group provides comprehensive rental and management services – it currently manages more than 500,000 sqm of leasable space. PHN Group owns about 270 hectares of land earmarked for projects in various market segments. PHN Group is also active in the construction sector – by providing general contracting, subcontracting and design services, as well as in the development sector as an investor – by carrying out projects related to the construction and sale of residential units and the construction of commercial buildings. PHN Group’s main market is Poland. PHN’s activities in the rental segment are concentrated primarily in Warsaw and the largest regional cities, including the Tri-City, Poznań, Kraków, Katowice, Łódź and Wrocław. PHN has been listed on the Warsaw Stock Exchange since 13 February 2013.