mBank lender issues PLN 560 mln CLN bonds

The CLN bonds were purchased by Stichting PGGM Credit Risk Sharing Fund, represented by PGGM Vermogensbeheer B.V. as its proxy.

The bank announced the settlement of a synthetic securitisation transaction executed on a portfolio of corporate loans with a total nominal value of PLN 5.237 billion (EUR 1.2 bln) as of August 30, 2024.

"As part of the transaction, the bank transferred a significant part of the credit risk of a selected securitised portfolio to investors. The

selected securitised credit portfolio remains on the balance sheet of the bank," mBank said in the market filing.

"The bank has the option to make a one-time increase of the transaction nominal value up to a maximum level of PLN 7.0 billion, subject to the investor's consent ('Ramp-up Option)," it added.

On the issue date, the Credit Linked Notes were paid-up in the amount of approximately PLN 419 million (EUR 96.2 mln). After the Ramp-up Option is exercised, the paid-up amount of the Credit Linked Notes may increase to a maximum amount of PLN 560 million (EUR 128.6 mln).

As part of the transaction, mBank is obliged to pledge collateral for the benefit of the noteholders in the form of eligible debt securities (and/or cash) deposited with an independent custodian - The Bank of New York Mellon.

"The transaction will increase the Common Equity Tier 1 (CET1) capital ratio by approximately 0.4 percentage points at the consolidated level, when referenced to reported figures for mBank group at the end of third quarter of 2024," it added.

UniCredit Bank GmbH acted as arranger and placement agent for the transaction.

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