On 3 July 2014 and 16 October 2015, PZU (through its subsidiary, PZU Finance AB (publ.)), issued Eurobonds, with the redemption date of 3 July 2019. The bonds were released on the regulated market of the Irish Stock Exchange on the basis of a prospectus approved by the Central Bank of Ireland, and on the Catalyst market. The issued bonds were tap issues, and formed a single series of identical parameters regarding the value of the coupon, interest periods and maturity.
The parameters of the issued bonds:
|Issue date||16 October 2015||3 July 2014|
|Face value of issue (EUR thousand)||350,000||500,000|
|Issue price of one bond (EUR)||99,218||99,407|
|Frequency of coupon payment||1 year||1 year|
|Bond yield at issue||1.593%||1.499%|
The bonds have been classified as measured at amortized cost.
|Undiscounted cash flows from the issued debt securities||31 December 2015||31 December 2014|
|Up to 1 year||48,705||29,303|
|Over 1 year and up to 5 years||3,688,273||2,248,363|
The liabilities of PZU Finance AB (publ) arising from the bonds (including the obligation for payment of the nominal value of bonds and interest on the bonds) were secured with a guarantee provided by PZU to all bondholders. The maximum value of the guarantee was not specified. The maximum value of the guarantee expires upon the expiry of the claims of the bondholders towards PZU Finance AB (publ).
Eurobonds were issued within PZU Group's strategy of matching assets and liabilities denominated in EUR. After having acquired the Baltic companies, an important portion of PZU Group's assets became dependent upon the euro exchange rate. Therefore, the Group decided to issue the Eurobonds in this currency.