Issued by the Republic of Poland and listed on the Luxembourg Stock Exchange, this €750 million bond joins the LGX platform as the first sovereign green bond in the world.

"Poland is one of the largest sovereign issuers listed on our stock exchange, and we are honoured to have been chosen as the place of listing for Poland's first green bond, the first sovereign green International financial markets," commented Robert Scharfe, Chairman of the Board of Directors of the Luxembourg Stock Exchange.

Polish Deputy Minister of Finance Piotr Nowak explained: "The Luxembourg Stock Exchange is one of the most important and innovative international bond markets in Europe. The recent launch of Luxembourg Green Exchange is a concrete demonstration of this open and innovative approach, in connection with the needs and trends of the financial markets. Moreover, the quotation in Luxembourg was strongly recommended by specialists of the capital markets. The Republic of Poland currently holds €50 billion in bonds on the Luxembourg Stock Exchange."
 
The green bond - with a maturity date of 20 December 2021 - is admitted to the regulated market. As indicated in the prospectus, the funds raised through this operation will finance projects to combat global warming and support the energy transition. The Luxembourg Stock Exchange emphasises the importance of transparency regarding the traceability and quality of the use of funds collected. The Polish Government undertook to produce a detailed ex-post report on the actual use of the funds up to their total allocation. The first report is expected within one year and will be renewed on an annual basis. Its objective is to make public the content of the projects financed and their social and environmental impacts.

Poland is a pioneer in this market and is taking active steps to support the transition of its economy towards more sustainable energy sources and clean technologies. The green character of the bond was analysed and evaluated by Sustainalytics and was the subject of a favourable opinion in a detailed public report that will be available on LGX. "Transparency is paramount for investors. For this reason, our listing process requires issuers to solicit and make available to investors an independent external review of the framework they have put in place to ensure the quality of the Allocation and traceability of funds," commented Julie Becker, Member of the Executive Committee of the Luxembourg Stock Exchange.

Other sovereign states have already publicly indicated their willingness to follow in the footsteps of Poland, and to follow the movement launched by corporate issuers and development banks. "We are very pleased to display the first green sovereign bond on LGX, hoping that many others will soon follow the example of Poland," added Julie Becker.

The Green Finance Platform

The LGX platform, launched in September 2016, brings together issuers who spend 100% of the funds raised on green investments. It requires that green securities meet strict eligibility criteria, including:

• Self-labeling: the issuer adopts a proactive approach to the declaration of the green character of its issue.

• Use of raised funds: the issuer agrees to allocate 100% of the funds raised in green projects and to provide maximum transparency on the use of these funds.

• "Ex-ante" review and "ex-post" reporting: the issuer undertakes to provide information in a transparent manner on the basis of best practices and reporting methodologies of the market, both upstream and during the lifetime of the issue.