Exclusive: Polish DMO Head: Will Issue New Green Bond in 2025, Potentially in Euros

31 January 2025

By Marta Vilar – MADRID (Econostream) – Poland will issue a new green bond in 2025 and is looking into the euro market for that purpose, according to Karol Czarnecki, director of the Public Debt Department at the Polish Ministry of Finance.

In an interview with Econostream on January 21 (transcript here), Czarnecki said that it was ‘very likely’ that Poland’s return to the green bond market would take place in 2025.

Asked if they would reopen one of their previous green bonds or issue a new one, he agreed to the latter.

‘There is definitely space on the euro market to issue a bit longer duration this year’, he said with regards to the details of this new green bond.

Poland’s issuance of foreign currency bonds would depend on market conditions, he said, as it ‘would be unwise to try and predict when it would happen.’

As for its first foreign-currency bond sale of the year for €3 billion, Czarnecki stated that they were ‘satisfied’ and ‘happy’ with investor demand and structure.

‘We were also happy with the fact that we were able to tighten the price’, he said. ‘We have achieved two goals: we received a substantial part of the funding, and at a relatively good price.’

Regarding the recent spike in global bond yields due partly to the return of Donald Trump to the US presidency, Czarnecki said he did not necessarily expect the situation getting much worse.

‘What we've been experiencing in the last couple of months or weeks in the market is increased volatility, which was rather natural’, he said.

If something were to happen, Poland would be able to ‘do our job the usual way’, he said, noting that pre-financing was over 30% at the turn of the year.

‘Of course, we should assume that there might some events that increase the volatility’, he said. ‘But we are not feeling pushed by the situation to issue at any price.’

Demand had been increasing in the short end of the curve, he said in the context of a question about Poland’s return to the T-bill market.

‘We don't want to treat T-bills as last resort lending tools’, he said. ‘Using them should result in lower borrowing cost in a medium-term perspective.’

Demand was ‘widely spread’ in first T-bill auction in 2025, he said, and was ‘not only higher, but also more concentrated in terms of price’ in the second one.

Poland’s issuance strategy meant to be predictable on a permanent basis, in which the volume issued would depend on market demand, according to Czarnecki.

Asked what investors were demanding most in the current juncture, he said that for there was an interest in longer duration in the euro market.

‘When the opportunity arises, we will consider such an activity on the market’, he said.