Orlen has secured €600 million to finance its green investments, marking a significant step in the company’s energy transition strategy. The Polish oil and gas giant successfully completed the issue of green Eurobonds, attracting strong investor interest. Demand for the bonds exceeded the issue size by a factor of 2.5, indicating robust market confidence in Orlen’s strategic direction.
The proceeds from this bond issue will be channeled into energy transition projects and initiatives aimed at mitigating climate change. Orlen’s chief executive, Ireneusz Fafara, emphasized the importance of this funding in delivering the company’s energy transition vision. “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,” Fafara stated.
The €600 million offering features a fixed interest rate of 3.625% per annum and has a seven-year maturity, due on 2 July 2032. The bonds were issued to a predominantly international investor base, with over 60% allocated to ESG-focused investors. The total amount subscribed for was €1.49 billion, underscoring the strong appetite for sustainable investments.
Fafara highlighted the significance of this latest bond issue, noting that it provides long-term financing on the demanding European market. “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,” he said. The proceeds will support Orlen’s plans to develop renewable energy sources and expand zero-carbon road transport infrastructure.
This bond issue is Orlen’s second foray into green Eurobonds. The first, completed in 2021, comprised 5000 bonds with a total value of €500 million. The company’s continued success in securing green financing reflects a broader trend in the energy sector, where investors are increasingly prioritizing sustainability and climate mitigation.
The funds raised will be directed toward projects designed to support Orlen’s energy transition and climate mitigation goals. These include the development and acquisition of new renewable energy capacities, further expansion of zero-carbon transport infrastructure, and improvements in energy efficiency. As the energy sector grapples with the challenges of decarbonization, Orlen’s strategic moves could set a precedent for other companies navigating similar transitions. The company’s ability to secure substantial green financing not only bolsters its own sustainability efforts but also sends a strong signal to the market about the viability and attractiveness of green investments. This development could accelerate the pace of energy transition projects across the sector, as other companies look to follow suit.