Komerční banka successfully placed two issues of European Covered Bonds (Premium) with a total volume of EUR 1.5 billion

Komerční banka announces that it has successfully completed two additional placements of EUR 750,000,000 Mortgage Covered Bonds (European Covered Bonds Premium), issued under the EUR 5,000,000,000 Mortgage Covered Bond Programme. The bonds are rated AAA by Fitch, with 6-year and 7-year tenors (soft bullet maturity with one year extension) maturing in 2032 and 2033, respectively.

The sole purchaser of the entire issued amount of 1.5 billion euros was Komerční banka’s parent company Société Générale. The transaction was completed in line with prevailing market conditions, taking into account comparable externally placed covered bond transactions. The bonds were priced at mid-swap (MS)+34bps for the bond with 6-year maturity (re-offer yield 3.173%) and MS+37bps for the bond with 7-year maturity (re-offer yield 3.242%). The coupon for both bonds was set at 3.125%.

Société Générale acted as Sole Lead Manager, Bank Pekao and BayernLB acted as Co-Managers on the bond issue.

The covered bonds will be listed on the regulated market of the Luxembourg Stock Exchange.