DEAL: Poland’s first sovereign green bond

Author: Tom Young | Published: 1 Feb 2017

The Polish government’s issuance of the world’s first sovereign green bond involved amendments to the country’s Public Finance Act and the creation of a bespoke green bond framework, all within a month.

The €750 million ($805 million) five-year note, which was issued following a successful roadshow in London, Paris, Amsterdam, Frankfurt and Munich, was two times oversubscribed and priced at 48bp over mid-swaps.

Poland pipped France in becoming the world’s first sovereign issuer, launching its bond on December 12. France followed suit on January 25, albeit with a far larger $7.5 billion issuance.

"France began their work on its issue earlier than Poland, but the preparation process on the Polish side was much quicker," said Andrzej Sutkowski, local partner of White & Case in Warsaw, who advised the Polish government. Associate Katarzyna Grodziewicz also played an integral role. There was believed to be no dialogue...