Alior Bank has decided to increase its bond issuance from the originally planned 500 million zlotys to 800 million zlotys, citing overwhelming demand during the order book building process. The move underscores growing investor appetite for Polish bank debt instruments amid a stabilising interest rate environment.
The bank’s management board adopted a resolution to raise the value of Series T bonds after receiving significantly more interest than anticipated. The new bonds will carry a floating annual interest rate based on the six-month WIBOR rate plus a margin of 1.6 percentage points. Currently, WIBOR 6M stands at 3.92 percent, meaning the initial coupon would be around 5.52 percent.
Investor demand drives larger issuance
Alior originally planned to issue 500 million zlotys worth of bonds, but after building the order book it became clear that demand far exceeded that target. – W związku z dużym zainteresowaniem wyrażonym w trakcie budowy księgi popytu podjęto decyzję o zwiększeniu pierwotnie zakładanej kwoty emisji z 500 mln zł do 800 mln zł – podał Alior Bank w komunikacie. The bank decided to increase the issue size by 60 percent to meet investor appetite.
The bonds are scheduled for issuance on 30 June 2026, with maturity set for 14 June 2030. This four-year tenor places the instrument in the medium-term segment, which has been particularly popular among institutional investors seeking predictable yields above inflation.
Attractive yield in a falling rate environment
The floating rate structure with a 1.6 percent margin over WIBOR 6M offers investors protection against further rate cuts while still providing a premium over risk-free assets. With the Polish central bank having eased monetary policy gradually over the past year, bank bonds with such spreads have become increasingly appealing to pension funds and insurance companies.
Alior Bank’s main shareholders include PZU with 31.91 percent, OFE Nationale-Nederlanden with 9.89 percent, and Allianz OFE with 8.83 percent. The bank is a component of the WIG20 index, the main index of the Warsaw Stock Exchange, which groups the 20 largest and most liquid companies listed in Warsaw.
Źródło: WNP.PL, Fot. Szymon Pelc / Shutterstock
