Polish 'green'bonds: a world first

Deputy finance minister Piotr Nowak said: “There was a lot of interest concerning our issue [of these bonds], which was translated into high demand from investors during today’s issue.

“This has allowed us to raise EUR 750 million, compared to earlier plans to only raise around EUR 500 million.”

Nowak added that thanks to the high levels of interest, the bonds were eventually issued at 48 basis points over mid-swaps, a better result than the original expectations of 60 basis points over mid-swaps.

Poland’s finance ministry announced that a significant part of the money raised is expected to fund spending commitments in the 2017 budget which are intended to improve the environment.

“Green bonds will allow us to further diversify our investor base, as they have largely been purchased by investors with a clear interest in green investments,” Nowak said.

Although Poland currently relies on coal for the majority of its electricity production, the country is a signatory of the Paris Agreement, an agreement between almost 200 countries to limit global warming to no more than two degrees Celsius over pre-industrial levels, signed last December. (sl/rg)

Source: PAP