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Green Bonds pricing

01.03.2019

The Ministry of Finance priced on February 28th, 2019 a 10- and 30-year EUR denominated “Green Bonds” maturing on March 7th, 2029 and March 8th, 2049, respectively. Aggregate demand was EUR 4.8bn.

Demand for 10-year bond stood at EUR 3.5bn and allowed for issue of EUR 1.5bn. The bond was priced at the level of 35 basis points over mid-swap rate, yielding 1.057% with annual coupon at the level of 1%.

Demand for 30-year bonds stood at EUR 1.3bn and allowed for issue of EUR 0.5bn. The bond was priced at the level of 77 basis points over mid-swap rate, yielding 2.071% with annual coupon at the level of 2%.

Proceeds from the issuance will be spent on environmental projects according to the Green Bond Framework.

The issue was executed under Republic of Poland’s Euro Medium Term Note (EMTN) Programme. The lead managers and bookrunners on the transaction were Citi, ING, J.P. Morgan, PKO BP, Santander and Societe Generale.

 

Additional information concerning structure of investors

  • The structure of 10-year Green Bonds’ buyers was well diversified, with 47% of allocation going to designated green accounts.

The bonds were allocated to investors from France (23%), Germany (22%), Benelux (11%), Poland (6%) the UK (5%), Switzerland (3%), Austria (3%), Scandinavia (3%), and other Europe (14%). The share of investors from the Middle East, and other countries, amounted to 4% and 6%, respectively.

In terms of investor type, the buyers group included: asset managers (38%), banks (36%), insurance and pension companies (12%), central banks and public institutions (11%), hedge funds (2%), and other entities (1%).

  • The structure of 30-year Green Bonds’ buyers was also well diversified, with 43% of allocation going to designated green accounts.

The bonds were allocated to investors from Germany (45%), France (15%), the UK (9%),  Switzerland (3%), Austria (3%), Benelux (3%), and other Europe (18%). The share of investors from the Middle East, similarly to investors from other countries, amounted to 2%.

In terms of investor type, the buyers group included: asset managers (48%), insurance and pension companies (37%), banks (6%), central banks and public institutions (5%), hedge funds (3%), and other entities (1%).

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