Bank supports development of local currency debt capital markets
The European Bank for Reconstruction (EBRD) is purchasing PLN 20 million (approx. €4.7 million equivalent) of senior unsecured bonds issued by the Warsaw Stock Exchange (WSE) to support the bourse’s contributions to the development of Poland’s debt capital market.
The Warsaw Stock Exchange is a leading exchange in Central and Eastern Europe and the 4th largest exchange in Europe by the number of listed companies with 476 issuers listed on the main market, representing approx. €144 billion in capitalisation.
The EBRD’s investment will encourage the development of the local corporate bond market by supporting a local currency corporate fixed-term bond issue of a longer maturity. The investment will contribute to lengthening the tenor and broadening the investor base.
Established in 1991, the WSE is one of the fastest growing exchanges in Europe. It operates regulated market exchanges and OTC trading platforms for trading in financial instruments (i.e. stocks, futures, bonds etc.) and energy commodities.
Noel Edison, EBRD Director, Insurance and Financial Services, said: “This is an important transaction to support the development of the Polish debt capital market, particularly for issuances with longer tenor. It is also the first time the EBRD participates in a debt financing issuance by a stock exchange in one of its countries of operations.”
Paweł Tamborski, President of the Management Board of WSE, said: “We welcome the EBRD as a strong and reliable investor. The EBRD’s active participation in this transaction is another proof of investors’ confidence in the WSE’s business, its stability and growth prospects. We are eager to cooperate further with the EBRD in supporting the real economy and the capital market in Poland”.
Since the beginning of its operations in Poland in 1991, the EBRD has invested €7.6 billion in more than 350 projects in the country. In addition to its wide product range of bilateral facilities for companies and financial institutions, in recent years the EBRD has developed a growing portfolio of capital market investments (both equity and debt), for which demand is high.