mBH is a mortgage bank with the longest track record of issuing covered bonds on the Polish capital market. As of December 31, 2017, the value of issued mortgage covered bonds amounted to PLN 6.4 billion.
Covered bond issues conducted by mBank Hipoteczny constitute an important part of mBank Group’s funding strategy The scale of mBH’s issuing activity in 2017 and the parameters of individual issues mark a significant change in the policy of the Bank, whose main function is to raise funding and refinance long-term mortgage loans through covered bond issues. The main focus is on narrowing the maturity gap between assets and liabilities, reducing the currency gap, and cutting the cost of new funding.
In 2017, mBank Hipoteczny placed six issues of mortgage covered bonds in the total nominal amount of PLN 2.7 billion, including two private placements in the amount of PLN 700 million. The four issues denominated in the Polish currency amounted to PLN 2.2 billion and the two issues denominated in EUR stood at EUR 124.9 million.
It should to be emphasized that in October 2017, mBH placed the biggest issue of covered bonds in PLN in the history of the Polish capital market in the amount of PLN 1 billion, a maturity of 6 years and interest of WIBOR 3M + 0.82% per annum.
As part of debt restructuring in 2017, the Bank repurchased on the secondary market three series of mortgage covered bonds issued under a private offering in the total nominal amount of PLN 700 million and EUR 70 million.