Warsaw Stock Exchange: Kraków Is The Second Biggest New Issuer Of Municipal Bonds On Catalyst

Debt instruments issued by the City of Kraków at PLN 300 million have been newly listed on the exchange-operated bond market yesterday.
It is the 164^th issuer on Catalyst and the 14^th new listing on the market in 2013.
Yesterday’s new listing is one of the three biggest new listings of bonds on Catalyst this year¹ and the second biggest issue of municipal bonds at the time of new listing in the history of the market.

As of yesterday, bonds of Kraków (issued by the Municipality of the City of Kraków) are available to investors. PLN 300 million of debt instruments have been newly listed on Catalyst. It is the third biggest issue to be introduced to Catalyst this year (after the new listing of bonds of ING Bank Śląski at PLN 565 million and that of Ciech at PLN 320 million).

Kraków is the 164^th issuer listed on Catalyst and the 14^th new listing on the debt market in 2013. Currently Catalyst lists instruments of 124 companies, 22 co-operative banks and 15 local governments, which increasingly frequently issue municipal bonds and introduce them to trading on the stock market in order to raise capital.

Yesterday’s new listing of Kraków bonds is the second biggest issue (after the new listing of Warsaw bonds) of bonds issued by a local government and introduced to Catalyst.

Table 1. Biggest issues of municipal bonds at the time of new listing on Catalyst

No.	Issuer of municipal bonds	Date of new listing	Value of issue (PLN)
1	City of Warsaw	30-09-09	600 000 000
2	Municipality of the City of Kraków	24-04-13	300 000 000
3	City of Poznań	30-09-09	218 000 000
4	City of Rybnik	30-09-09	98 000 000
5	City of Wałbrzych	12-12-12	5 700 0000
6	Municipality of the City of Elbląg	28-06-12	35 000 000
7	Municipality of the City of Włocławek	17-10-12	30 000 000
8	City of Siedlce	07-03-13	25 100 000
9	Municipality of the City of Przemyśl	06-03-13	24 420 000
10	Municipality of the City of Tczew	30-09-09	20 000 000

The Mayor of Kraków Jacek Majchrowski and the City Treasurer Lesław Fijał participated in the new listing ceremony. The debt instruments of the City of Kraków were issued in 2012 and have been introduced yesterday to the alternative trading system on the Catalyst market in two series: series I – 180,000 bonds with a total nominal value of PLN 180 million and a unit nominal value of PLN 1,000, and series II – 120,000 bonds with a total nominal value of PLN 120 million and a unit nominal value of PLN 1,000.

The redemption date of the first series of bonds is April 2024. The redemption date of the second series is October 2027. Interest on both series will be paid semi-annually at the reference rate (WIBOR 6M) plus a margin of 1.6 percent per annum.

Catalyst was opened by the WSE on 30 September 2009 in order to create in Poland an organised, transparent and secure platform of trading in debt instruments issued by companies and local governments and has become an attractive venue offering diversification of funding for issuers.

¹ The statistics do not include the new listing of bonds of the company GNB Auto Plan Sp. z o.o. at PLN 518.7 million listed only on the wholesale market operated by BondSpot SA.