36. Subordinated liabilities
Significant accounting policies
Principles of classification and measurement are described in the Note 5.4.
Financial data
On 30 October 2017, the Bank issued 10 years subordinated bonds with a total nominal value of PLN 1.25 billion. The funds from the issue were designated – after receiving the approval of the Polish Financial Supervision Authority on 21 December 2017 – to increase the Bank’s supplementary capital, pursuant to art. 127 para. 2 point 2 of the Banking Law and art. 63 of Regulation No. 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms. The bonds were introduced to trading on the ASO Catalyst market.
On 15 October 2018, the Bank issued 10 years subordinated bonds with a total nominal value of PLN 0.55 billion. The funds from the issue were designated – after receiving the approval of the Polish Financial Supervision Authority on 16 November 2018 – to increase the Bank’s supplementary capital, pursuant to art. 127 para. 2 point 2 of the Banking Law and art. 63 of Regulation No. 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms. The bonds were introduced to trading on the ASO Catalyst market.
On 15 October 2018, the Bank issued 15 years subordinated bonds with a total nominal value of PLN 0.20 billion. The funds from the issue were designated – after receiving the approval of the Polish Financial Supervision Authority on 18 October 2018 – to increase the Bank’s supplementary capital, pursuant to art. 127 para. 2 point 2 of the Banking Law and art. 63 of Regulation No. 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms. The bonds were introduced to trading on the ASO Catalyst market.
On 4 June 2019, the Bank issued 12 years subordinated bonds with a total nominal value of PLN 0.35 billion. The funds from the issue were designated – after receiving the approval of the Polish Financial Supervision Authority on 8 July 2019 – to increase the Bank’s supplementary capital, pursuant to art. 127 para. 2 point 2 of the Banking Law and art. 63 of Regulation No. 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms. The bonds were introduced to trading on the ASO Catalyst market.
On 4 December 2019, the Bank issued 12 years subordinated bonds with a total nominal value of PLN 0.40 billion. The funds from the issue were designated – after receiving the approval of the Polish Financial Supervision Authority on 10 December 2019 – to increase the Bank’s supplementary capital, pursuant to art. 127 para. 2 point 2 of the Banking Law and art. 63 of Regulation No. 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms. The bonds were introduced to trading on the ASO Catalyst market.
Subordinated liabilities by type
| TYPE OF TRANSACTION | NOMINAL AMOUNT | CURRENCY | INTEREST RATE | ISSUE DATE | MATURITY DATE | SPECIAL TERMS | BALANCE SHEET VALUE AS AT 31.12.2021 |
| Subordinated bonds |
1,250,000 | PLN | variable, WIBOR 6M + margin |
30.10.2017 | 29.10.2027 | Call option giving the Bank the right of early redemption within 5 years from the issue date, subject to the approval of the PFSA | 1,255,225 |
| Subordinated bonds |
550,000 | PLN | variable, WIBOR 6M + margin |
15.10.2018 | 16.10.2028 | Call option giving the Bank the right of early redemption within 5 years from the issue date, subject to the approval of the PFSA | 552,762 |
| Subordinated bonds |
200,000 | PLN | variable, WIBOR 6M + margin |
15.10.2018 | 14.10.2033 | Call option giving the Bank the right of early redemption within 10 years from the issue date, subject to the approval of the PFSA | 201,111 |
| Subordinated bonds |
350,000 | PLN | variable, WIBOR 6M + margin |
04.06.2019 | 04.06.2031 | Call option giving the Bank the right of early redemption within 12 years from the issue date, subject to the approval of the PFSA | 351,109 |
| Subordinated bonds |
400,000 | PLN | variable, WIBOR 6M + margin |
04.12.2019 | 04.06.2031 | Call option giving the Bank the right of early redemption within 12 years from the issue date, subject to the approval of the PFSA | 401,267 |
| Total | 2,750,000 | 2,761,474 |
| TYPE OF TRANSACTION | NOMINAL VALUE | CURRENCY | INTEREST RATE | ISSUE DATE | MATURITY DATE | SPECIAL TERMS | BALANCE SHEET VALUE AS AT 31.12.2020 |
| Subordinated bonds |
1,250,000 | PLN | variable, WIBOR 6M + margin |
30.10.2017 | 29.10.2027 |
Call option giving the Bank the right of early redemption within 5 years from the issue date, subject to the approval of the PFSA |
1,253,762 |
| Subordinated bonds |
550,000 | PLN | variable, WIBOR 6M + margin |
15.10.2018 | 16.10.2028 |
Call option giving the Bank the right of early redemption within 5 years from the issue date, subject to the approval of the PFSA |
552,116 |
| Subordinated bonds |
200,000 | PLN | variable, WIBOR 6M + margin |
15.10.2018 | 14.10.2033 | Call option giving the Bank the right of early redemption within 10 years from the issue date, subject to the approval of the PFSA |
200,876 |
| Subordinated bonds |
350,000 | PLN | variable, WIBOR 6M + margin |
04.06.2019 | 04.06.2031 | Call option giving the Bank the right of early redemption within 12 years from the issue date, subject to the approval of the PFSA |
350,524 |
| Subordinated bonds |
400,000 | PLN | variable, WIBOR 6M + margin |
04.12.2019 | 04.06.2031 | Call option giving the Bank the right of early redemption within 12 years from the issue date, subject to the approval of the PFSA |
400,598 |
| Total | 2,750,000 | 2,757,876 |