Poland awarded for green bonds

Climate Bonds Initiative organisation recently awarded Poland for issuing the so-called green bonds. The country received top prize in the category Green Bonds Pioneer. The prize was collected by Deputy Prime Minister Piotr Nowak in a ceremony that took place on the 6^th of March in London.

Green bonds are fixed-income securities designed to finance pro-environment initiatives. This financial instrument is nothing new, yet until recently there has been no state treasury that would decide on issuing them. The government of Poland made a bold move and decided to be a pioneer on the green bond market.

Minister Nowak informed the assets gathered through issuing the bonds will cover budget expenditure related to environment improvement as well as refinancing such expenses incurred in the years 2014-2016. More specifically, the funds are to finance deforestation, green energy and rail transportation projects. In general, green bonds (also called climate bonds) are meant to be a source of financing for climate change – related solutions.

Polish Ministry of Finance issued green bonds in December 2016, becoming the first-ever state issuer of this type of securities. The issued bonds were in the amount of 750 million euro, with 0.634 interest and maturity of five years. Issuing the instrument was met with much interest from the investors. Initially, the planned bond value was 500 million EUR, but government officials decided to increase it to 750 million EUR.

The move is considered a great success. In London, Minister Piotr Nowak already announced the government is going to issue more green bonds in 2017. This month, the Ministry of Finance revealed the instrument may be issued annually.

Green bonds are mainly bought by foreign investors, such as investment funds, banks, and pension funds. The largest group of buyers of the first tranche of bonds were from Germany and Austria. There are already some rumours that other European countries are going to fall into the footsteps of Poland.

Investment Outlook and Business Perspective

Poland remains one of the most attractive investment destinations in the European Union. With GDP exceeding EUR 650 billion, Poland is the sixth largest economy in the EU and the largest in Central and Eastern Europe. The country has maintained positive economic growth for over three decades, including through multiple global crises.

Foreign direct investment in Poland continues to grow, driven by the country’s strategic location, skilled workforce, EU membership, competitive costs, and improving infrastructure. Key sectors attracting investment include manufacturing, technology, business services, logistics, and financial services.

For investors considering entry into the Polish market, proper structuring of the investment vehicle is crucial. The choice between a sp. z o.o. (LLC), S.A. (joint-stock company), branch office, or joint venture depends on the investment size, sector, tax considerations, and long-term strategic objectives. Professional advisory can help optimize the structure from both operational and tax perspectives.

If you are doing business in Poland or considering entering the Polish market, Zalewski Consulting can help. Learn more about our bank account opening services, or contact us for a free consultation.