Annual Report 2023

35. Subordinated liabilities

  • 35. 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 31.12.2023
Subordinated bonds 1,250 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 1,266
Subordinated bonds 550 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 558
Subordinated bonds 200 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 203
Subordinated bonds 350 PLN variable, WIBOR 6M + margin 04.06.2019 04.06.2031 Call option giving the Bank the right of early redemption within 7 years from the issue date, subject to the approval of the PFSA 352
Subordinated bonds 400 PLN variable, WIBOR 6M + margin 04.12.2019 04.06.2031 Call option giving the Bank the right of early redemption within 6.5 years from the issue date, subject to the approval of the PFSA 402
TOTAL 2,750 2,781
TYPE OF TRANSACTION NOMINAL AMOUNT CURRENCY INTEREST RATE ISSUE DATE MATURITY DATE SPECIAL TERMS BALANCE SHEET VALUE AS AT 31.12.2022
Subordinated bonds 1,250 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 1,269
Subordinated bonds 550 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 560
Subordinated bonds 200 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 204
Subordinated bonds 350 PLN variable, WIBOR 6M + margin 04.06.2019 04.06.2031 Call option giving the Bank the right of early redemption within 7 years from the issue date, subject to the approval of the PFSA 353
Subordinated bonds 400 PLN variable, WIBOR 6M + margin 04.12.2019 04.06.2031 Call option giving the Bank the right of early redemption within 6.5 years from the issue date, subject to the approval of the PFSA 403
TOTAL 2,750 2,789

The currency structure for the Subordinated liabilities item is presented in the 46.4 in the section on currency risk.

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