Poland: Corporate Bond Framework

Overview
Project Summary Document
Environmental and Social Documentation
Procurement
Complaints

Project ID 47824

Status Cancelled

Location

Poland

Business Sector

Manufacturing and Services

Notice Type

Private

Project ID 47824

Status Cancelled

Location

Poland

Business Sector

Manufacturing and Services

Notice Type

Private

Disclosure date

09 May 2016

As per section 1.4.2 (iii) of the Directive on Access to Information: "For Projects approved by Bank management where the Board of Directors has delegated the approval authority, the PSD shall be disclosed at the start of the relevant no-objection notification period to a member country of the Bank in accordance with Article 13 (iii) of the Agreement Establishing the EBRD."

Project Description

The EBRD is considering providing up to EUR 125 million equivalent to invest in medium to long-term bond instruments, issued by corporates (excluding banks and non-bank financial institutions, e.g. factoring, leasing companies) in Poland. The framework is expected to address the lack of depth of corporate bonds in the domestic market in terms of issuers, size and maturity and is in line with the objectives of the Local Currency and Local Capital Market Development Initiative launched by EBRD in May 2010. It will contribute to: (i) further developing the Polish capital market; and (ii) supporting
the diversification of funding sources of the Polish corporates.

Project Objectives

The framework is intended to promote the development of local currency capital markets through a combination of transactions and ongoing policy dialogue aimed at lengthening the maturity and widening the diversity of issuance types as well as broadening the investor base. By almost any metric the Polish corporate bond market is behind developed markets in Europe or comparable emerging markets. The Polish market lags its peers in many quantitative and qualitative elements.

Average corporate bond market maturity is still relatively short and turnover is low in comparison to its corporate bond market peers. Increasing local currency corporate bond issuances, lengthening maturity and widening the diversity of issuance types and investors base remain key challenges for the Polish bond market.

Transition Impact

The expected transition impact of the framework derives from: (i) demonstrating the viability of local currency bond financing for a broader range of Polish corporates and at the same time aiming to broaden the investor base (ii) market expansion through the building of critical mass of outstanding capital market instruments and supporting the liquidity of the market; and (iii) improved disclosure for private placements.

Client Information

The framework will be available for Polish corporates, excluding banks and non-bank financial institutions (e.g. factoring, leasing companies). The framework will not concentrate on a specific set of corporates (i.e. by size, business activity, and sector) but will be available to issuers from various sectors and various companies from large to mid-size, potentially including large SMEs.

EBRD Finance Summary

EUR 125,000,000.00

Medium to long term bond instruments (public issuances and private placements) issued by corporates in Poland. The framework is intended to included both fixed and floating rate instruments as well as secured and unsecured structures. This is expected to enable the framework to meet a wider range of client and investor needs and allow flexibility in response to market opportunities.

Total Project Cost

EUR 625,000,000.00

Up to EUR 625 million equivalent with the Bank's participation of up to 20% of the respective bond programme.

Environmental and Social Summary

The Framework itself is not categorised; however the sub-projects will be categorised on a case by case basis. Each of the sub-projects will undergo a separate Environmental and Social Due Diligence (ESDD), the scope of which will be determined on the basis of the specific use of proceeds, especially where this involves investment projects. The ESDD will include at the minimum an assessment of potential environmental and social impacts and benefits of the investment projects and the bond issuer's environmental and social management systems and capacity to implement the
Bank's Performance Requirements.

Based on the ESDD, an Environmental and Social Action Plan (ESAP) will be agreed with the respective bond issuer to structure the sub-project to meet the Bank's Performance Requirements.

The environmental and social performance of each sub-project will be reported to the Bank on an annual basis.

Technical Cooperation

None.

Company Contact Information

Konrad Wilczak
wilczakk@ebrd.com
+48 22 520 5700

Transition impact

ETI Score:60

PSD last updated

21 Jan 2019

Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Environmental and Social Documentation is not available for this project.

Selected procurement notices related to this project may be shown below. Further procurement opportunities related to this and other projects, if available, maybe be viewed in the EBRD Procurement Portal.

The EBRD's Environmental and Social Policy (ESP), Access to Information policy (AIP) and Project Accountability Policy (PAP) enable sound and sustainable development in its projects. The Independent Project Accountability Mechanism (IPAM) deals with complaints about environmental, social and disclosure matters related to the Bank’s investments.

No complaints about this project have been made so far.

Our story

How we invest in changing lives

What we offer for businesses

Search