ORLEN has successfully completed a €600 million issuance of green eurobonds, significantly exceeding expectations with investor demand reaching 2.5 times the offer size. The Polish energy group will use the proceeds to finance projects tied to energy transition and climate change mitigation.
“The success of ORLEN’s green bond issuance reflects strong international investor confidence in our development plans as outlined in our strategy,” said Ireneusz Fąfara, CEO of ORLEN. “Our energy transition and value creation strategy through 2035 requires over PLN 30 billion in annual investment. Securing stable, long-term financing is therefore essential. This bond issuance has enabled us to raise capital on a challenging European market, confirming investors’ belief in our solid and safe financial standing. The funds will support the development of renewable energy sources and expansion of zero-emission transportation infrastructure.”
The fixed-rate bonds carry an annual interest rate of 3.625% and mature on July 2, 2032. The offering was largely taken up by foreign investors, with over 60% classified as ESG-focused, meaning they demand strict sustainability and environmental criteria from issuers. The total demand reached €1.49 billion, nearly 2.5 times the offered amount.
“According to our 2035 strategy, ORLEN plans to invest PLN 350–380 billion over the next decade, with 40% allocated to the Energy segment,” said Magdalena Bartoś, Vice President for Finance at ORLEN. “This includes upgrades to energy and gas distribution networks, further development of renewables, construction of energy storage systems, gas-steam units, and small modular reactors. These projects are crucial to Poland’s energy transition and the delivery of safe, zero-emission energy. That’s why efficient, long-term funding sources like green bonds are so important. This issuance marks another key milestone in our strategic roadmap.”
The funds will specifically support renewable energy development (including the construction and acquisition of new renewable capacity), zero-emission transportation (such as fast-charging networks for electric vehicles and hydrogen infrastructure for buses and cars), and energy efficiency improvements.
The allocation and use of funds will adhere to ORLEN’s Green Finance Framework, available on orlen.pl. This framework meets international standards and has been positively assessed by Moody’s Ratings, receiving a high SQS2 score (Very Good) — a rating awarded to only a few companies with comparable business profiles.
This marks ORLEN’s second green eurobond issuance. The first, in 2021, raised €500 million through the sale of 5,000 bonds.
Source: ceo.com.pl
