Poland

Emerging markets bonds sold off after the US Federal Reserve indicated a more hawkish tone on Wednesday — but much like what happened after the Brexit result, spreads came off their wides quite quickly.

Poland delivered a keenly priced green bond debut on Monday in the brief window before the US Federal Open Markets Committee meeting on Wednesday. Now attention in CEEMEA bonds has fallen upon next year's issuance pipeline.

Poland raised €750m from its debut green bond on Monday which was allocated 61% to green accounts. The sovereign claimed that it was able to print flat to inside where a new conventional bond would have come, setting a strong precedent for future sovereign green issues.

Republic of Poland has opened books on its debut green bond, marketing the deal with a “sensible” a 20bp-25bp premium, according to emerging market bankers.

UniCredit turned to the equity-linked bond market on Thursday to dispose of its last 7.4% stake in Bank Pekao, after agreeing to sell 32.8% of the Polish lender to insurance company Powszechny Zakład Ubezpieczeń and the Polish Development Fund, for Z10.6bn (€2.4bn).

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.