Bank Millennium’s supervisory board has approved the second bond issue programme with a nominal value of up to PLN 2bn and the second bank debt securities issue programme with a nominal value of up to PLN 2.5bn.
The bonds and bank debt securities can be denominated in PLN, €, US$ or CHF. The maximum maturity will not exceed 10 years. The bonds and bank debt securities may be issued until the end of 2017 and will not be secured. The programs will allow the bank to obtain additional funding for general operations.
Our view:
The decision was prompted by the imminent expiry (i.e. at the end of 2012) of existing debt securities issue programs originally set in 2007 and 2008. Particular issues will be based on individual management decisions, which will set detailed parameters taking into account the current market conditions. We expect the news to have a neutral trading impact.