Komerční banka successfully places EUR 750 million European Covered Bonds (Premium) due October 2030

Komerční banka announces that it has successfully completed the placement of EUR 750,000,000 Mortgage Covered Bonds (European Covered Bond Premium), issued under the EUR 5,000,000,000 Mortgage Covered Bond Programme updated on 3 October 2025. The bonds are expected to be rated AAA (Fitch), with a 5-year tenor (soft bullet maturity with one year extension). The covered bond was priced at mid-swap (MS)+40bp (re-offer yield 2.755%) and with a coupon of 2.75%. 

Komerční banka announced the virtual investor marketing for the bond issue on 7 October, during which it engaged with high number of debt investors to present its business story and the updated programme.

Following strong feedback from the investors, initial guidance for this issue was released on 8 October at MS+45bp area. The orderbook momentum was positive and allowed KB to increase the size of the transaction to EUR 750 million (compared to an initial size of EUR 500 million) and at the same time tightened the price by 5bp to MS+40bp.  

The transaction was 2.4x oversubscribed at final pricing with the demand peaking above EUR 1.7 billion during bookbuilding, illustrating a strong, high-quality and well-diversified interest form institutional investors. In terms of geographical breakdown, German and Austrian investors comprised the majority of final allocations (52%), followed by investors from Nordics (12%), by investors from Benelux (11%), from United Kingdom and Ireland (9%), from central Europe (9%) and investors from the rest of Europe (8%). Banks and Private Banks took up 47% of the bond, Asset Managers took up 35%, 15% was taken up by Central Banks and Official Institutions, Pension Funds took up 2% and 1% of final allocations was taken up other types of investors.

Société Générale acted as a Sole Global Coordinator, Société Générale, Erste Group, Helaba, LBBW and UniCredit acted as Joint Bookrunners and NORD/LB was a Co-Manager on the bond issue.

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