The senior unsecured bond is expected to have a short to intermediate maturity.
The last euro bond from CEEMEA was sold by Bulgarian Energy Holding on July, 24, a €150m 3.5% 2025.
Commerzbank, HSBC, JP Morgan, Morgan Stanley and UBS are arranging the mBank roadshow. The meetings will take place in Germany and London on August 27 and 28.
“Frankly its less of an EM name than it is IG these days,” said one DCM banker close to the deal in London. “It’s investment grade and Poland is single-A rated. Their biggest investor base is Germany, not EM investors, so they have been somewhat insulated from the recent movements in EM. They’re much more correlated to general market health, even though that hasn’t been great either.”
mBank is rated —/BBB+/BBB. Its senior €500m September 2020s were trading around an I spread of 53bp at announcement of this new note and its November 2021s at 60bp over.
The DCM official seemed confident that a successful trade is on the cards.
“Pricing for mBank actually looks better now than when we were looking at it pre-summer,” he said. “The FIG space has been doing well — were up to our sixth FIG trade over August and they’ve all been heavily oversubscribed. So that bodes well for mBank. And let’s see — though mBank isn’t usually an EM trade, it may be somewhere EM can park money in the volatility, so it might be appealing for those investors too.”