Nominal amount |
Interest rate | Currency | Period | Carrying amount | ||
31.12.2019 | 31.12.2018 | |||||
Subordinated bonds | 1 700 | 3.34 | PLN | 28.08.2017 – 28.08.2027 | 1 719 | 1 720 |
Subordinated bonds | 1 000 | 3.29 | PLN | 05.03.2018 -06.03.2028 | 1 011 | 1 011 |
Total | 2 730 | 2 731 |
The subordinated bonds were designated for increasing the Group’s supplementary funds upon approval of the Polish Financial Supervision Authority.
On 28 February 2018, the Bank placed an issue of subordinated bonds totalling PLN 1 000 million. The nominal value of one bond is PLN 500 000 and the issue price is equal to the nominal value. The bonds bear interest in semi-annual interest periods, and interest on the bonds is assessed with reference to the nominal value at a floating interest rate of WIBOR 6M increased by a margin of 150 bp over the entire issue period. On 8 March 2018, the Polish Financial Supervision Authority agreed to designate proceeds from the issue of subordinated bonds for an increase in the Bank’s Tier 2 capital.