BGK's first bond issue in the US

Bank Gospodarstwa Krajowego (BGK) launched its first-ever bond issue in the US market. The issue was worth USD 1.75 billion and will contribute to the COVID-19 Response Fund (FPC-19). The transaction attracted investors from various regions of the world, including the United States. This year, BGK is also planning to issue bonds in other foreign markets, including Japan.

Record high interest from investors allowed BGK's bonds to be priced at 190 basis points above the yield on U.S. government bonds. It was the first issue of BGK’s debt securities in the 144A format, allowing direct sales to the US investors. The bank carried out the transaction based on its medium-term note issuance program (MTN), which in April this year received a Moody's rating of "(P)A2" with a stable outlook. The value of the issued bonds amounted to USD 1.75 billion, and the proceeds from their sale will contribute to the COVID-19 Response Fund (FPC-19).

"The tremendously successful issue of bonds in the US market is proof of foreign investors’ confidence in Bank Gospodarstwa Krajowego. The transaction had attracted a wide range of investors from the United States, thus our decision to expand the bank’s operations in the international markets was confirmed. As a consequence, BGK has been visibly noticed in the community of global investors. We are confident that our presence in the dollar market, alongside the euro market, opens up an attractive and flexible space for financing BGK's activities" - Paweł Nierada, first vice-president of BGK, said.

BGK is the second largest issuer of bonds in the domestic market after the State Treasury. The current value of bonds issued for the COVID-19 Response Fund in the local market is PLN 148.1 billion, while in the foreign market - EUR 2.3 billion and USD 2.15 billion.