The yen-denominated bonds issued by the Polish development bank (BGK) will be provided with a guarantee by the State Treasury of the Republic of Poland and the Japan Bank for International Cooperation (JBIC). Totalling JPY 93 billion, the transaction will contribute to the BGK’s Aid Fund dedicated to supporting Ukraine. This is the BGK’s first privately placed issue denominated in Japanese yen.
JBIC’s guarantee is provided under “Guarantee and Acquisition toward Tokyo market Enhancement” (GATE). The joint lead arrangers are Nomura Securities Co., Ltd. and Daiwa Securities Co. Ltd., with Mizuho Bank, Ltd. serving as a commissioned company for bondholders. JBIC’s credit enhancement through the GATE facility for BGK’s Samurai bond issuance is expected to provide broader investment opportunities for Japanese investors. It will assist BGK in diversifying its sources of financing as well as contribute to the BGK’s Aid Fund. This is the BGK’s first issue, in which bond payments are guaranteed simultaneously by two institutions with a high reputation and credit rating i.e. Poland’s State Treasury and the JBIC. The issue is scheduled on May 24th, 2023. The cooperation between BGK and JBIC is based on the MoU agreement signed in 2022.
I am glad we have launched our first Japanese yen issue with such a trusted partner as JBIC. The transaction confirms BGK's access to a wide range of investors and a solid position of the bank’s in the international financial markets. It also opens the Japanese market for us and paves the way to expanding cooperation with the JBIC in other areas. Taking all into account, we do believe the issue will be welcomed well and contribute to the Aid Fund greatly
– said Paweł Nierada, First Vice President of the Management Board, BGK.
The Aid Fund was established under the special law to address the humanitarian crisis caused by Russian invasion of Ukraine. It aims to provide financing and co-financing the support for Ukraine, particularly the citizens of Ukraine affected by the armed conflict. Tasks financed by the Fund may be implemented both inside and outside the territory of Poland.
BGK is the Polish development bank, which supports sustainable social and economic growth in the country. It initiates and facilitates cooperation between businesses, the public sector, and financial institutions. The bank also finances infrastructural investment projects, provide Poles with greater access to the housing market and supports the activity of Polish companies, both domestically and internationally. Additionally, it cooperates with other financial institutions on a partnership basis, while complementing their offer.