High demand for Polish corporate bonds led to a rapid decline in margins last year. In 2025, once again, the vast majority of corporate bond programs in the market are coming from real estate developers. The conditions for investors remain highly favorable. Recent issues, such as the one conducted by White Stone Development (WIBOR 3M + 4.4% margin), with a high oversubscription rate, confirm the growing demand for debt instruments among both individual and institutional investors.
A Strong Year for the Polish Corporate Bond Market
The Polish corporate bond market had a successful 2024. The value of bond issuances targeted at retail investors exceeded PLN 1.6 billion last year, while demand surpassed PLN 4 billion. Investors were attracted by the appealing interest rates, typically composed of WIBOR rates (which have remained around 5.8% since early 2024) plus a few percentage points of margin. According to data from Obligacje.pl, total corporate bond issuances reached PLN 14.2 billion across 260 transactions, compared to PLN 15.9 billion in 2023.
Developers’ Strong Dominance in the Bond Market
A distinctive feature of the Polish corporate bond market is its high concentration in the real estate development sector. Financing operational activities through debt has become increasingly popular among developers in recent years. According to Obligacje.pl, of the PLN 1.5 billion raised by corporate bond issues since the beginning of 2025, 80% went to developers. Experts emphasize that the credibility of companies and the Catalyst market is a key factor attracting investors.
“The interest payments on our company’s bonds have always been made on time, and there has never been a case of a breach of issuance terms. Our previous corporate bonds program in June 2024 was a success, with a reduction rate of 53.25%. The latest issue in February 2025 saw even greater interest, with a reduction rate exceeding 70%,” said Anna Suchodolska, co-CEO of White Stone Development.
Most developer bond issuances are conducted by residential developers, with a smaller share from commercial real estate companies. According to experts, this limits diversification and makes the corporate bond market highly dependent on the condition of Poland’s residential real estate sector. However, the recently observed 80% share of developer issuances is an exceptional situation. “At times, developer issuances account for 30%, other times 50%, but the recent 80% share is truly rare,” commented Michał Sadrak, an analyst at Obligacje.pl, adding that investors are anticipating more diversified issuances.
Meanwhile, the developer bond market continues its strong momentum. Early in the year, Robyg completed a bond issuance program worth PLN 250 million. Marvipol launched its fourth bond program, while Atal, Archicom, and Develia are preparing debt issuances targeted at institutional investors. Lokum has yet to provide details but plans to issue PLN 100 million in bonds. In addition to residential developers, commercial real estate firms are also exploring opportunities in the bond market.
Growing Importance of Retail Investors and Market Stability
A characteristic feature of the Polish bond market is the high representation of retail investors. Last year, 12% of corporate bond issuances were directed at them, a figure that experts say deviates from the norms seen in Western economies. Another key factor driving the popularity of corporate bonds is the credibility of the Polish market. There have been no significant credit events in recent years.
“This is an exceptionally strong period for the corporate bond market, where over the past 10 years, the average annual share of unpaid capital has been 3.6%. The absence of major defaults over the past three years, despite high interest rates, demonstrates that companies have managed this challenging period very well. However, at the same time, investor vigilance may have been lulled,” summarized Michał Sadrak from Obligacje.pl, as quoted by Bankier.pl
