On 15 February 2022 the PZU Management Board adopted a resolution on submitting a motion to the PZU Shareholder Meeting in the matter of issuing subordinated bonds on the domestic market. The contemplated issue was closely related to PZU’s planned early redemption of the series A subordinated bonds issued on 30 June 2017 with a total nominal value of PLN 2,250 million with a maturity date of 29 July 2027 (Series A Bonds). The terms and conditions for the issue of Series A Bonds contemplated PZU’s early redemption option on 29 July 2022.
In connection with the planned redemption of the Series A Bonds, PZU intended to issue a new issue of subordinated bonds to replace them and their parameters will be similar to the Series A Bonds. The contemplated issue would be for subordinated bonds on the domestic market with a total nominal value of no more than PLN 3,000 million whose proceeds would be treated as tier 2 own funds according to the Insurance Activity Act and Commission Delegated Regulation (EU) 2015/35 of 10 October 2014 supplementing Directive 2009/138/EC of the European Parliament and of the Council on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II).
On 25 February 2022, PZU’s Supervisory Board gave a positive opinion on the Management Board’s motion on the issue of the bonds, and on 25 March 2022, PZU’s Shareholder Meeting approved the bond issue.
On 31 May 2022, in connection with the unfavorable market situation the PZU Management Board made the decision to discontinue work on the bond issue and, as a consequence, not to take advantage of the option of early redemption of Series A bonds.