mBank raises €250M in Poland's first euro AT1 bond, drawing 7x demand
What's the deal? mBank has raised €250 million ($280.7 million) through perpetual Additional Tier 1 (AT1) notes, issued on September 29, 2026, in what is the first euro-denominated AT1 bond from a Polish bank. The notes carry a fixed coupon of 6.625% until their first reset on March 29, 2032.
Why now? The issue strengthens mBank's capital base as it funds lending growth under its "Full Speed Ahead" strategy for 2026–2030. Subject to supervisory approval, AT1 instruments qualify as loss-absorbing regulatory capital.
How strong was demand? Peak orders topped €2.2 billion, more than seven times the offer, with the final order book near €1.75 billion from 135 investors. That let mBank tighten pricing by 50 basis points, from an indicated 7.125% to the final 6.625%.
The numbers behind it: In the first half of 2026, mBank Group reported net profit of US$503.2M, up from US$416.3M a year earlier, while total income held flat at US$1.56B. The deal ranks in roughly the top quarter of comparable raises by size.
What could go wrong? The notes qualify as AT1 capital only with regulatory approval and carry a trigger tied to a CET1 ratio below 5.125%, exposing investors to cancellation and write-down provisions. Fitch RatingsDealroom has a profile for this one. Try Dealroom → assigned the bonds a BB- rating.
The signal: The transaction opens the euro-denominated AT1 market to Polish banks and ties domestic growth to international capital. "This issuance is a milestone for mBank and for the Polish banking sector," said White & CaseDealroom has a profile for this one. Try Dealroom → partner Neha Saran, whose firm advised the joint lead managers.
Read more: ad-hoc-news.de
Image credit: DrabikPany
