HV BH to issue securities
Mortgage bank HypoVereinsbank Bank Hipoteczny has announced that it will issue mortgaged backed security bonds in September. However the issue at PLN60m will be some four times smaller than the PLN225m originally planned.
Jacek Furga, MD of HypoVereinsbank BH did not rule out further issues.
The issue will be in euros as 95 percent of the bankís mortgage portfolio is quoted in this currency.
The change in plan was caused by market demand which is stronger for retail rather than commercial loans. Despite this the bank is not changing its profits forecast for this year at PLN19m. Last year the company reported a PLN5.1m net profit.
The September issue will be aimed at pension funds, several of which have already declared an interest.
Pension funds have been able to invest in mortgage bonds since last year although none have so far done so as both Polish mortgage banks have only had closed issues. This years issue by HypoVereinsbank BH is the first public issue in this country since the war.
Rheinhyp-BRE, HV BHís only competitor delayed an issue in March for the fourth quarter of this year although it considers it difficult to find takers for the euro quoted bonds.
This bank is likely to issue at least EUR50m worth of bonds.