Profil:
Bank Pekao SABank Pekao to continue supporting Polish development bank on domestic and foreign bond market
Poland's state development bank BGK has signed a cooperation agreement with Poland's second largest lender by assets Pekao regarding BGK bond issues, Bank Pekao announced in a press release. The cooperation will support the liquidity of the market for bonds issued by BGK for funds located therein, both on the primary and secondary markets.
According to Pekao, the cooperation includes specific activities by the lender during bond issue tenders organised by BGK, supporting the secondary market liquidity of BGK bonds issued on the domestic market, and participation in BGK issues on the Euro market.
"Thanks to this agreement, Bank Pekao becomes BGK's partner in bond issues on the domestic market, not only providing investors for tenders organised within the framework of BGK funds, but also managing liquidity on the secondary market, becoming the first choice for institutional investors interested in this asset class," said Pekao's CEO Cezary Stypulkowski, quoted in the press release.
"The agreement also provides for support in actively seeking investors in international transactions, strengthening Bank Pekao's markets area and our recognition in Europe," he added.
From BGK's perspective, the increase in the liquidity of Polish state development bank's bond market will be another important factor contributing to a reduction in the cost of servicing these bonds.
"The agreement with Bank Pekao is another element of the modified system of issuing BGK bonds for funds. We are a regular issuer of bonds in Poland and on foreign markets. Since mid-2024, liquid, benchmark public issues on the Euro market and the American market have become the main source of funding on foreign markets," said first deputy head of BGK Marta Postula.
As she pointed out, at the beginning of 2025, BGK also modified the bond issuance system on the domestic market, which has allowed the Bank to sell more PLN bonds in the first half of this year than in the whole of 2024.
"We are now completing the modifications to this system with mechanisms designed to increase the liquidity of the domestic BGK bond market, thereby increasing demand and reducing the cost of servicing our bonds," Postula added.
pr/ ao/
