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Clifford Chance

Clifford Chance


Issuance of Additional Tier 1 (AT1) instruments possible under Polish law

28 September 2023

Poland has created Additional Tier 1 ("AT1") instruments within the meaning of the Capital Requirements Regulation No 575/2013 (the "CRR") by the Act of 14 April 2023 (the "Amendment Act") which amends, among others, the Act of 15 January 2015 on Bonds (the "Bonds Act") and the Banking Law of 29 August 1997 (the "Polish Banking Law").

As from 1 October 2023 (which is the date on which the Amendment Act will come into force) it will be possible to issue contingent convertible bonds (so called obligacje kapitałowe) and to incur subordinated loans (pożyczki podporządkowane) that can be qualified as AT1 instruments which are governed by Polish law. To be treated as Additional Tier 1 capital under the CRR the relevant instruments will need to obtain permission from the Polish Financial Supervision Authority (Komisja Nadzoru Finansowego, the "KNF").

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