62. Information on securitization of the lease portfolio and package sale of receivables
In September 2019, the Group, through PKO Leasing SA, conducted securitization of lease receivables with a value of PLN 2,500 million. On 26 September 2019, the Company sold lease receivables to the special-purpose vehicle Polish Lease Prime 1 Designated Activity Company (Polish Lease Prime 1 DAC) with its registered office in Dublin (Ireland). The receivables purchased by the SPV were financed mainly with an issue of securities (bonds) conducted on 26 September 2019 with the redemption date falling on 28 December 2029 and with funds obtained as part of the PKO Leasing SA Group. Bonds with a nominal value of PLN 1,835 million were taken up by entities from outside the PKO Bank Polski S.A. Group. The objective and benefit of selling these receivables to the SPV was to obtain and diversify sources of long-term financing.
As at 31 December 2022, the value of receivables constituting the object of the securitization transaction for lease receivables amounted to PLN 992 million, and as at 31 December 2021 it was PLN 1,992 million.
Carrying amounts of the financial assets and financial liabilities covered by securitization are presented in the table below:
| SECURITIZATION | Transaction amount | Amount of risk remaining at the Group | Transaction amount | Amount of risk remaining at the Group |
|---|---|---|---|---|
| 31.12.2022 | 31.12.2022 | |||
| carrying amount of assets | 992 | 992 | 1 992 | 1 992 |
| carrying amount of liabilities | 1 067 | 1 067 | 2 139 | 2 139 |
| Net position | (75) | (75) | (147) | (147) |
Moreover, in 2022 the Group effected package sales (balance sheet and off-balance sheet receivables) of nearly 43 thousand individual receivables from retail and business customers amounting to more than PLN 1 351 million (PLN 1 331 million in 2021). The total carrying amount of the provisions for potential claims on the sale of receivables as at 31 December 2022 amounted to PLN 4 million (as at 31 December 2021, it was PLN 2 million).
As a result of the sale of the receivables all risks and rewards were transferred, hence the Group derecognized these assets.
The Group did not receive any securities on account of the aforementioned transactions.