Clifford Chance has advised mBank Hipoteczny on its foreign issuance of EUR 300 million of mortgage bonds, placed on the Euromarket and maturing in September 2025.
According to Clifford Chance, “during book building, over EUR 1 billion worth of bids were collected from over 70 real-money investors (i.e., investment and pension funds). The final book consisted of European investors, predominantly from Germany, Scandinavia, and Austria. The issued bonds are listed on the Luxembourg Stock Exchange.”
A specially constructed derivative instrument consisting of a cross-currency interest rate swap was used in the issuance. “The particularity of this kind of transaction lies in the fact that it cannot be terminated when the issuer becomes insolvent and in securing the counter-party's rights on the same level as the rights of the covered-bond holders by entering the transaction into the register of security of mortgage bonds,” Clifford Chance reports.
Clifford Chance’s Warsaw-based team included Partners Grzegorz Namiotkiewicz and Andrzej Stosio, Counsel Grzegorz Abram, Senior Associate Aleksandra Rudzinska, and Junior Associate Roksana Kaluzna, while its team in London included Partner David Dunnigan and Senior Associates Eric Green and Daniel Deacon.
Editor's note: After this article was published, CEE Legal Matters learned that White & Case advised joint lead managers Commerzbank AG, Erste Group Bank AG, Landesbank Baden-Wuerttemberg, and Landesbank Hessen-Thuringen Girozentrale on the issuance. The firm's team included Warsaw-based Partner Marcin Studniarek, Counsel Bartosz Smardzewski, and Associate Dawid Ksiazek, London-and-Dubai-based Partner Debashis Dey, and Dubai-based Associate Adam Gao.