Current report No 34/2020


Synthetic securitization of the CHF mortgage portfolio

Getin Noble Bank S.A. ("Bank") informs that on 20 November 2020, the Management Board of the Bank adopted a resolution granting consent to move to the stage of execution of the synthetic securitization transaction (the “Transaction”) of the CHF mortgage loan portfolio with a minimum assumed volume of CHF 750 million ("Portfolio").

The purpose of the Transaction planned by the Bank is to transfer the credit risk of the Portfolio, including the risk resulting from changes in exchange rates, and consequently it is to lower the level of the capital requirement in relation to it. If the Transaction is completed, it is expected that the Bank's capital ratios would improve. Legal and regulatory risks, including litigation and forced conversion of CHF mortgage loans, will not be transferred.

Apart from the above, the resolution also includes Bank intends to approach a select group of investors, with the support of J.P. Morgan Securities plc, acting as a Transaction arranger, to assess such potential Transaction.

In view of the above, the Bank also points out and stipulates that the success of the transaction, including the achieved impact on capital ratios, depends on many external factors beyond the Bank's control and which are difficult to predict due to the current environment. The main variables include, first of all, the interest of investors in the offer presented to them by the Arranger and the development of the situation on the financial markets in connection with the ongoing Covid-19 coronavirus pandemic.

The Bank will inform about the further stages of the Transaction, including its impact on the level of capital ratios, in separate current reports.