In the first rated asset-backed securitisation deal since the financial crisis and the first such deal to be offered to local capital market investors in Poland, the EBRD is investing in senior bonds issued by Warsaw-based Getin Noble Bank to boost auto lending to individuals and small and medium-sized businesses.
The EBRD investment, worth PLN 213 million, is providing finance to Getin Noble Bank as part of a PLN 519 million issuance of senior bonds which will be listed on the local capital market, in ASO BondSpot (a member of the Warsaw Stock Exchange capital group). The senior notes are rated Aa3 by Moody’s on the international rating scale.
Getin Noble Bank is one of the few locally owned banks in Poland with a nationwide retail distribution network. Established in 2010 following a merger of Getin Bank and Noble Bank, the Getin Noble Bank is now number one player in the auto loan finance market in Poland.
The EBRD’s finance will help Getin Noble Bank secure diversified medium- to longer-term funding and establish a long-term, higher-rated funding structure. In addition, the transaction will increase the capital markets’ awareness of structured products originated by Polish issuers as well as creating a new instrument for the Polish institutional investor base.
“This transaction will prove that asset-backed securities in local currency are a viable form of financing in Poland too,” said Noel Edison, Director for Insurance and Financial Services at the EBRD, announcing the deal. “Such instruments can play an important role in helping banks address their significant maturity mismatches. Moreover, these are a valuable addition to the universe of investment grade-rated securities denominated in local currency available to intuitional investors and thus are essential for development of the local capital markets and for shifting to local currency funding and lending,” he added.
Development of local capital markets and local currency lending is one of the EBRD’s key priorities. In 2010, in response to the financial crisis, the Bank launched a Local Currency and Capital Markets Development Initiative. In early 2013 a dedicated team will begin work on coordinating all aspects of the EBRD’s activities in promoting the development of local capital markets and local currency lending, including projects, Treasury operations, policy dialogue and legal and regulatory technical assistance.
To date, the EBRD has invested about €5.8 billion in the Polish economy in over 300 projects.