News
30.07.2012 Floatation of PGNiG's notes on the Catalyst market
On July 30th 2012, the notes issued in June by Polskie Górnictwo Naftowe i Gazownictwo SA were floated on the Catalyst market, on the multilateral trading facility operated by BondSpot. This is the largest Polish non-bank issue to have been listed on that market.
The introduction of the notes to trading on the BondSpot multilateral trading facility will make it possible to establish their market value, which is important from the point of view of both existing and prospective buyers. The Company also hopes that its presence on the Catalyst market will facilitate the development of that trading platform.
"PGNiG SA is one of the companies seen by financial institutions as an attractive investment case. Being one of the largest businesses in Poland and a reliable debtor, as confirmed by our high credit rating, we hope that the floatation of the notes on the BondSpot multilateral trading facility will strengthen our liquidity. The Polish trading platform for debt securities has a significant potential, but needs positive drivers to support its strong growth. PGNiG, as one of the leading Polish companies, wishes to make its contribution," said Sławomir Hinc, Vice-President of the PGNiG SA Management Board.
From the left: Ludwik Sobolewski (GPW), Sławomir Hinc (PGNiG), Paweł Tamborski (MSP)
The note issue presents an alternative to bank financing. PGNiG SA seeks to diversify sources of financing in order to support its liquidity position in the medium term.
The issue proceeds will be used to satisfy the day-to-day financial needs related to the implementation of the PGNiG Group's strategy, in particular to cover expenditures incurred on the exploration for conventional oil and gas as well as shale gas, and on the construction and extension of production facilities, underground gas storage facilities and the distribution network.
The issue of the notes has met with significant interest of financial institutions. On account of considerable oversubscription and attractive yield (6M WIBOR + 1.25pp), the total nominal value of the notes in issue is PLN 2.5bn (instead of the planned PLN 2bn).
The notes have been subscribed for by pension funds (53.44%), insurance companies (32%), banks (10%) and investment funds (4.56%).
On June 19th 2012, PGNiG issued five-year notes for PLN 2.5bn. All the notes are denominated in the Polish złoty and were offered in a private placement exclusively in the territory of Poland. They mature on June 19th 2017.
The notes were issued under the PLN 4.5bn Note Issuance Programme of May 22nd 2012. The issue arrangers are ING Bank Śląski SA and Bank Polska Kasa Opieki SA.
Joanna Zakrzewska
PGNiG SA
