Poland

Poland’s plans to issue the first ever sovereign green bond surprised supporters and sceptics alike this week. Climate finance experts are hopeful that the deal marks a major shift in Polish policy to a greener future after the government initially resisted ratifying the UN’s Paris Agreement, writes Virginia Furness.

Green bonds have been a hot topic for several years now, but sovereign issuers have been slow to step up to the plate. Until now. Poland is on the road for a euro-denominated green bond and is meeting investors in London this week.

The first ever sovereign green bond looks set to be issued by Poland — a coal-reliant nation that was once one of the most outspoken opponents of the UN’s Paris Agreement. Despite incredulity from green finance experts, the deal is an important step for green financing. It raises the environmental agenda within Poland, and offers a firmer commitment to green financing than displayed by any other sovereign so far.

Poland is marketing what will be the first ever sovereign green bond. Climate finance experts are hopeful that the deal marks a major shift in Polish policy to a greener future after the government initially resisted ratifying the UN’s Paris Agreement.

Standard & Poor’s has surprised to the upside, revising Poland’s outlook to stable from negative while maintaining South Africa’s investment grade status last Friday. The latter decision prompted a 15bp-20bp rally in both South African sovereign and corporate debt.

As expected, the loans for the leveraged buyout of Polish auction website Allegro are tightly priced, with tenors of six and seven years for less than 400bp.

Potential lenders to the Z4.8bn loan for the leveraged buyout of Polish firm Allegro will meet in Warsaw on Thursday where the deal will be launched into general syndication.

Nine banks have been mandated to arrange the financing for the leveraged buyout of Polish online marketplace Allegro, and a senior loan will be launched into syndication later this month.

Leveraged buyout activity in Central and Eastern Europe is gaining momentum, driven by a few jumbo deals pushing for terms and pricing more commonly seen in Western European markets. For some local banks, the conditions are too tough to compete.

The Polish government and a state owned development bank have both made a rare appearance in the MTN market.

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Poland cemented its position as one of CEE’s most nimble and savvy issuers on Tuesday by printing a 30 year euro deal — only the second ever from a non-Eurozone sovereign — in an opportunistic trade.