Poland Green Bond

Poland Green Bond

Project Overall Goal

Raise proceeds for mitigation and adaptation projects as outlined in Poland’s Green Bond Framework

Executive Summary

Taking advantage of favorable market conditions, Poland announced a dual tranche 10 and 30 year Euro Green Bond offering on February 28th, 2019, its first sovereign green bond. The issuance was managed by six banks, Citi, ING, JPMorgan, PKO BP, Santander and Societe Generale, and verified by Sustainalytics.
Initial price talks of MS+45bps area and MS+85/90bps area respectively. After one hour of book building, the investor interest already exceeded €2,6bn on a combined basis. This momentum continued, enabling the issuer and the syndicate group to release final guidance of MS+35/40bps WPIR and MS+77/80bps WPIR respectively at 11.26UKT. Investors reacted positively as demand increased further, allowing the Ministry to set sizes and launch the transaction at €1.5bn and MS+35bps for the 10-year; and €500mn and MS+77bps for the 30-year. Demand exceeded €4.7bn at its peak and stood at a final €4.5bn.
The 30-year bond is the longest ever Green Bond issued by a sovereign issuer. Furthermore, Poland is the most frequent sovereign issuer in this market, with all its offerings being in line with the issuer Green Bond Framework and with a Second Party Opinion provided by Sustainalytics. With almost 200 investors participating, the transaction saw a high degree of granularity with a broad and well-diversified distribution. The country’s pioneering role in the Green Bond market opens the way to other sovereigns to follow suit, improves the supply of funds for environmental projects while expanding the range of local investors and reduces the cost of funding for sustainable projects.

Project Details

Sector:  Sectors mentioned in the Polish Green Bond Framework (renewable energy, clean transport, sustainable agriculture, afforestation, national parks, reclamation of heaps)
Tags:  Europe, High Income Countries, Mitigation and Adaptation, non-blended instruments
Source of Capital:  Private Institutional Investors and Asset Managers, Private Debt Providers
Project URL:  Download PDF

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