60. Information on securitization of the lease portfolio and package sale of receivables

In 2019, the Group conducted securitization of lease receivables with a value of PLN 2.5 billion. 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. The objective and benefit of selling these receivables to the SPV was to obtain and diversify sources of long-term financing.

The redemption of debt securities in the period as of 1 January to 31 December 2023 at their nominal value amounted to PLN 1,060 million and was carried out on quarterly settlement dates: 28 February, 30 May, 31 August and 30 November 2023.

With effect from 30 November 2023, PKO Leasing S.A. exercised its option to buy the remaining lease receivables left in the programme (the clean-up-call option). The reason for closing the transaction in question was the relatively low outstanding balance of the financing raised. The SPV used the proceeds from the resale of receivables to PKO Leasing S.A. to buy back and redeem the last bonds and repay the subordinated loans granted to it by PKO Leasing S.A.

Preparations are underway to begin the process of winding down the SPV, Polish Lease Prime 1 DAC, which is expected to be completed by the end of 2024.

As at 31 December 2023, the value of receivables constituting the object of the securitization transaction for lease receivables amounted to PLN 0 million, and as at 31 December 2022: PLN 992 million.

In addition, in 2023 the Group effected package sales (balance sheet and off-balance sheet receivables) of more than 21 thousand individual receivables from retail and business customers amounting to more than PLN 770 million (43 thousand individual receivables of PLN 1,351 million in 2022). The total carrying amount of the provisions for potential claims on the sale of receivables as at 31 December 2023 amounted to PLN 2 million (as at 31 December 2022, it was PLN 4 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.