Orlen has secured €600m to finance green investments. The company said it had successfully completed a €600m issue of green Eurobonds, an offering which had generated strong investor interest.
According to Orlen, demand exceeded the issue size by a factor of 2.5. The proceeds will be used to finance energy transition projects and initiatives aimed at mitigating climate change.
Orlen chief executive Ireneusz Fafara said: “The success of Orlen’s issue of green Eurobonds is a clear sign of international investors’ confidence in our strategic development plans.
“To deliver on our energy transition vision and build the Group’s value by 2035, we must invest over PLN 30bn annually. Securing stable funding is therefore a key pillar of our strategy.
“With this latest bond issue, we have raised long-term financing on the demanding European market – further proof of investors’ belief in the strength and resilience of Orlen’s financial position.
“The proceeds will support our plans to develop renewable energy sources and expand zero-carbon road transport infrastructure.”
The €600m offering features a fixed interest rate of 3.625% per annum. The bonds with a seven-year maturity (due 2 July 2032) were issued to a predominantly international investor base.
Orlen said over 60% of the bonds were allocated to ESG-focused investors – those requiring issuers to meet specific sustainability criteria. The total amount subscribed for was €1.49bn.
The funds raised through the bond issue will be directed toward projects designed to support the Orlen Group’s energy transition and climate mitigation goals.
These include, in particular, the development and acquisition of new renewable energy capacities, further expansion of zero-carbon transport infrastructure, and improvements in energy efficiency.
The current offering is Orlen’s second issue of green Eurobonds. The first one, completed in 2021, comprised 5000 bonds with a total value of €500m.