39.3. Subordinated liabilities
| Type of liability | Type of interest rate | Notional amount | Currency | Period | Carrying amount | |
| 31.12.2022 | 31.12.2021 | |||||
| Subordinated bonds | 6M WIBOR +0.0155 | 1 700 | PLN | 28.08.2017 – 28.08.2027 | 1 752 | 1 710 |
| Subordinated bonds | 6M WIBOR +0.0150 | 1 000 | PLN | 05.03.2018 – 06.03.2028 | 1 029 | 1 006 |
| Total | 2 781 | 2 716 | ||||
The subordinated bonds were designated for increasing the Group’s supplementary funds (Tier 2) upon approval of the Polish Financial Supervision Authority. Due to unfavourable market circumstances, a decision was made on 1 August 2022 to abandon the early redemption of the series OP0827 subordinated bonds issued by the Bank on 28 August 2017. On the same day, the Management Board of PKO Bank Polski S.A. decided not to proceed with the Bank’s issue of subordinated bonds in the format of subordinated bonds with a ten-year maturity (on 26 April 2022, a resolution of the Bank’s Management Board was adopted to authorise the issue of such bonds).
On 8 August 2022, the Management Board of the Bank approved the establishment of a programme for the issue of Eurobonds by the Bank as the issuer (the Euro Medium Term Notes Programme – the “EMTN Programme”) of up to EUR 4 billion. Under the EMTN Programme, it will be possible to issue unsecured Eurobonds in any currency, including those in respect of which obligations may be classified as eligible liabilities or as the Bank’s own funds. Bonds issued under the EMTN Programme will be registered with the international central securities depository (ICSD) operated by Euroclear Bank SA/NV or Clearstream Banking société anonyme. The Bank may apply for admission of individual series of Eurobonds to trading on a regulated market operated by the Luxembourg Stock Exchange, the Warsaw Stock Exchange.
On 16 December 2022, the Moody’s Investors Service rating agency assigned a (P)Baa3 rating to the EMTN Programme, for the unsecured bonds designated as Senior Non Preferred.
On 20 December 2022, the Prospectus for the EMTN Programme was approved by the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg.
On 1 February 2023, as part of the inaugural issue under the EMTN programme, the Bank issued 3-year Senior Preferred Notes with a total value of EUR 750 million, with the option of early redemption two years after issue. The coupon of the issue is fixed, at 5.625%, payable annually until the early redemption date, and variable thereafter, with quarterly payments. Moody’s Investors Service has assigned a rating of A3 to the issue. The bonds were admitted to trading on a regulated market on the Luxembourg Stock Exchange.