First issue of Polish "corona bonds" ends in success

"Demand for our bonds proved higher than we assumed. We raised PLN 16.3 billion (EUR 3.6 billion) from the issue instead of the planned PLN 15 billion (EUR 3.32 billion)," wrote Borys. Piotr Nowak/PAP

The first issue of the "corona bonds" conducted by the Polish Development Fund (PFR) ended in success, PFR head Paweł Borys wrote on Twitter on Monday.

"Demand for our bonds proved higher than we assumed. We raised PLN 16.3 billion (EUR 3.6 billion) from the issue instead of the planned PLN 15 billion (EUR 3.32 billion)," wrote Borys.

The yield from the 4-year bonds, guaranteed by the State Treasury, will entirely support the implementation of a government programme of financial support for entrepreneurs in connection with the negative effects of COVID-19.

Under the PLN 100-billion (EUR 22.05-billion) "financial shield," micro companies are to receive a total of PLN 25 billion (EUR 5.51 billion) in government aid, and large companies are to get the same amount. Small and medium-sized firms will be offered PLN 50 billion (EUR 11.03 billion) in total.

The support is to help companies maintain liquidity and financial stability and preserve jobs during the period of severe economic disruption caused by the coronavirus pandemic.

The maturity date of the PFR bonds, which are to be listed on the Catalyst market, was set for March 29, 2024.

The organiser of the issue was PKO BP, Poland's biggest bank.