Polsat Group to raise PLN 1 billion for refinancing the pro-ecological projects. Success of the first in Poland corporate green bonds issue

31 Jan 2020

Cyfrowy Polsat will carry out the first in Poland issue of corporate green bonds denominated in Polish zloty (PLN), with the proceeds from the bond issue, amounting PLN 1 billion, being used for refinancing the pro-environmental projects, including improvement of the energy efficiency by the Group or reduction of the carbon footprint associated with the electronic devices manufactured by Cyfrowy Polsat.

“We are very satisfied with the offering that has just been completed, while the terms that we have managed to obtain are a big success in our opinion. It has been a very big bond issue, as for the Polish market, and in addition we are the first company in Poland from a sector other banking to have used a relatively new financial instrument, namely corporate green bonds. We noted very high interest in the bond issue and very positive reception by the market. We have managed to obtain an excellent margin, the lowest in the history of the bond issues that we have carried out to-date, which is objectively very good when compared to the present market conditions, says Katarzyna Ostap-Tomann, the CFO of Cyfrowy Polsat S.A. and Polkomtel Sp. z o.o. “All of this is the proof of the attractiveness our offer and demonstrates the very high trust level that our Group and its strategy enjoy. Thanks to the bond issue we have been able to diversify our sources of financing even further and gain even more flexibility for our business. By floating the bonds on the Catalyst market we will offer investors yet another instrument for attractive and stable investing in Polsat Group,” adds Katarzyna Ostap-Tomann.

“It is yet another bond issue which has been carried out by our Group, however it is first time when we have decided to issue green bonds. It is a relatively new financial instrument on our market and it has so far been used by very few companies. Thus the process required additional work and preparations from us. But it was worth the effort. Ecology and natural environment protection are the issues that we care about very much. We are glad that the projects from this area, that the Group has pursued so far, have gained positive opinions of independent experts and have been appreciated by financial institutions,” says Mirosław Błaszczyk, the CEO of Cyfrowy Polsat S.A. and Polkomtel Sp. z o.o.

The proceeds from the bond issue will be used for refinancing the expenditures incurred for  upgrading and modernizing the Group’s telecommunication infrastructure in terms of its energy efficiency, including in particular:

  • Replacement of old energy intensive technology such as 2G and 3G with advanced 4G

LTE, which has potential to reduce network energy intensity per unit of data traffic.

  • Retrofitting and replacement of outdated fixed network infrastructure, such as the replacement of conventional copper-based technology with fiber optic technology, which allows for faster transmission of data over longer distances, requires less maintenance and offers reduction in energy consumption.
  • Investments in energy efficient solutions which support free cooling systems, intelligent lighting, optimization of power storage, server virtualization as well as machine learning and artificial intelligence.

Details of the bond issue:

  • The issue price of a bond is equal its par value and it amounts PLN 1,000.
  • The planned bond issue date is 14 February 2020.
  • The bonds will be redeemable after 7 years, with the planned redemption date being 12 February 2027.
  • The bonds can be redeemed at an earlier date.
  • The bonds carry a variable interest rate based on WIBOR 6M rate plus a margin of 165 bps. The interest will be paid out once every 6 months.

Apart from ecological products, renewable energy or waste reduction, energy efficiency is one of the topics that Polsat Group focuses on as regards environmental protection. The Group’s owner is the originator of Stowarzyszenie Program Czysta Polska (Clean Poland Programme Association) whose goal is to take actions aimed at ensuring life in a healthy and clean environment for the Polish society. The vision that Zygmunt Solorz has is not only to make Poland clean but it is also includes joint care by everyone for the country as well as for its natural environment, air, water and the nature that surrounds us. The association’s founders, as well as the members of its board of directors and management, include many representatives of Polsat Group.

The companies in which Zygmunt Solorz is involved are already making pro-ecological efforts. ZE PAK S.A. power generating plants have started the process of reducing the share of coal in power generation and pursue projects associated with renewable energy sources. The natural role of Polsat TV in this process is to promote the activities associated with environmental protection and inform of them. Cyfrowy Polsat Group is intensively working on the issues which have influence on natural environment. The group controls consumption of raw materials and is involved electricity-saving initiatives. It also carries out effective waste management activities while transferring the waste that it produces for recycling to specialized firms. It has introduced “zero-emission” vehicles to its car fleet and installed chargers for electrical vehicles in its headquarters location while also introducing car-sharing solutions.

Trigon Dom Maklerski S.A., Erste Securities Polska S.A. and Erste Group Bank AG were the bookrunners. The bond issue was arranged by a consortium consisting of Trigon Dom Maklerski S.A., Erste Securities Polska S.A., Erste Group Bank AG, Santander Bank Polska S.A., BNP Paribas Bank Polska S.A.

Greenberg Traurig Grzesiak sp.k. law firm was the legal advisor for the bond issue.

The corporate bonds issued by Cyfrowy Polsat will be traded in the alternative trading system managed by Warsaw Stock Exchange as part of Catalyst market.


Last updated 02/03/2020