The Polish market of pledge letters for years, despite legal changes carried out a decade ago, has been in its infancy. At the end of 2023, bonds of this type issued by Polish mortgage banks (only they can have such papers) were worth only PLN 18.9 billion, which was only 3.6 percent. active housing loans. Until now, they were directed only to institutional investors, as evidenced by, among others High nominal value of one bond (usually of up to PLN 500,000).
Experts present suggestions on how to stimulate the market of pledge letters in Poland, and one of the main demands is to expand the group of investors. While in the case of encountering banks to buy such papers issued by other groups, there may be a significant problem, because they are not (unlike tax bonds) excluded from bank tax and the Ministry of Finance is not willing to equalize the conditions, it may be a chance to strengthen the demand page may be the creation of a market of pledge among individual investors.
The mission of abrasion of this trail was undertaken by PKO BP, the largest bank in Poland, which is also controlled by the State Treasury. The issuer of pledged letters is to be PKO Bank Hipoteczny, i.e. a company one hundred percent depending on PKO BP. The undertaking has great support, among others Polish Financial Supervision Authority and the Ministry of Finance.
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Currently, the issue of the issue of the issue of the KNF. Our information shows that it applies to a three -year program of PLN 10 billion, and the planned moment of starting the first issue is October.
– We cannot speak about the prospectus because it has not been approved by the PFSA. At the end of May 2025, PKO Bank Hipoteczny submitted a request to the Prospectus on the National Prospectus Among the Mortgage Emission Program. This program will be addressed, among others, to individual investors in Poland – says Mariusz Przybylski, spokesman for PKO BH.
In order for pledge letters to be available for small investors, it will be necessary to reduce the nominal value of one paper, probably to PLN 1000 (or PLN 100), as is the debt -emitting companies for “Kowalski”.
See also: There is an idea to reduce housing margins. Experts indicate solutions
Pledged lists are said that they are “double -secured” in terms of the risk of insolvency. The point is that the investor (buyer of the pledge letter) has claims against the issuer of the letter and to a separate assets (security). Thanks to this, the rating of the pledge letter can be even higher than the rating of the country from which their issuer comes. Low risk, however, means lower profitability of such papers. They showed their strength, for example, during the debt crisis of the euro area of the south, e.g. Greek pledge lists did not lose their value as opposed to local tax bonds.
The bank will probably introduce encouragement for buyers of pledge letters
The key to success can be whether it is possible to convince investors that pledge lists are a good instrument to supplement and diversify the portfolio of the safest bonds, e.g. treasury. It will be important what interest rates will offer. He cannot reveal the conditions to approve the emission prospectus, but in the spring he placed four years of pledge letters with a variable interest rate based with 3M WIBOR increased by 0.8 percentage points. margin Currently, this would give an interest rate of 5.8 percent.
For comparison, three -year tax bonds with a fixed coupon will give 5.40 percent from August, and two -year -olds with a variable interest rate have a margin of 0.15 percentage points. Above the NBP reference rate (i.e. the interest rate is 5.15 percent).
Our information shows that in order to increase the attractiveness of this instrument for buyers, the bank wants to offer preferences for holders of pledge letters in the field of housing. The decision has not been made yet. The bank may consider, for example, lowering the mortgage margin if the holder of the pledge letter wanted to take out a housing loan. Another benefit could be the treatment of savings placed in a pledge letter as a own contribution (i.e. without the need to sell these papers).
-After approval of the basic prospectus by the Polish Financial Supervision Authority, we want to carry out the first emission of mortgage pledge letters in Poland in Poland addressed to retail investors. At the moment, we cannot provide details about planned offers. We provide more information in public after approving the prospectus – says Przybylski.
Lists is a good complement to the safe part of the investment portfolio
Can it be a good idea to include pledge letters in the retail investor's portfolio? According to experts, which we asked this question, the answer is affirmative.
– Practice shows that the forms of investing, which is not guaranteed by the state treasury, but subject to low credit risk, including even issues of pledge letters addressed to institutions, can offer an interest rate by several dozen or one hundred and a hundred and several dozen base points per year higher than tax bonds or bank deposits – says Szymon Jędrzejewski, a member of the board of NWAI.
He adds that pledge lists are one of the safer categories of financial instruments, it is a completely different level of risk than (definitely safer) than e.g. subordinated bonds, which some time ago some banks also offered retail investors. But – as Jędrzejewski points out – they have a slightly different risk profile than deposits or state bonds, so they can be a diversification of a debt, safer part of the wallet.
– Listing lists seem a good idea for retail investors. The new type of assets will allow greater diversification of customer portfolios – assesses Marcin Sławiński, director of the Transaction Department to his own account at Michael Ström Brokerage House.
He indicates that in terms of creditworthiness, the lanelist looks at least as good as tax bonds, but wonders what their interest rates and liquidity will be (e.g. tax bonds have de facto unlimited liquidity – an application for early redemption is submitted – and at the expense it is a relatively low commission). In the case of retail pledge letters, smoothness will have to be provided by an animator. The WSE – according to our information – wants to help build this market. Recently, the management board decided to lift the fee for placing on the market of low -denominations pledge letters.
– If the Issuer proposes a competitive coupon, then the letters will certainly meet with great interest among buyers. Customers will probably compare the attractiveness of these papers to ordinary “treasury”, to retail tax bonds and to covid papers that have a guarantee of the Treasury and are available on the secondary market of the WSE. Assuming that these will be papers with a purchase date above 3-5 years, it will be very important for investors the possibility of their earlier sale. Certainly these instruments will be listed on the WSE, so some liquidity will be – adds Sławiński.
See also: Why should the market for retail pledge letters be launched in Poland? [OPINIA]
The NWAI DM expert indicates that despite low risk, pledge letters are not an instrument with the simplest design. It is important, therefore, that the investor understands what he buys, what these differences in the risk are, what kind of assets are securing pledge letters, what their fate is in the event of bankruptcy or forced restructuring of the mortgage bank (which is rather unlikely).
– It should also be remembered to treat them in the portfolio for them as a substitute for bonds, and not instruments with a higher potential income and riskbecause a frequent error of retail investors in Poland, even those with a long investment horizon, is excessive allocation in debt instruments and deposits – says Jędrzejewski. He emphasizes that especially in the case of a shorter investment horizon and larger amounts, there is also a need to pay attention to liquidity.
Author: Maciej Rudke, Business Insider Polska journalist
