ORLEN has secured PLN 2.5 billion to finance green investments

“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 30 billion 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,” said Ireneusz Fąfara, CEO and President of the ORLEN Management Board.

The EUR 600 million 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. Notably, 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 EUR 1.49 billion, reflecting a nearly 2.5x oversubscription.

“According to our strategy to 2035, ORLEN plans to invest between PLN 350 and 380 billion over the next decade, with 40% of that total allocated to the Energy segment. Key projects will include the modernisation and expansion of our power and gas distribution networks, further deployment of renewables, construction of energy storage facilities, CCGT units, and small modular reactors (SMRs). These investments are crucial to driving Poland’s energy transition and delivering secure, zero-carbon energy. That’s why access to efficient, long-term funding is essential. The green bond issue marks yet another milestone supporting our ambitious strategic plans,” said Magdalena Bartoś, Vice President of the ORLEN Management Board, Chief Financial Officer.

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 (including fast-charging stations for electric vehicles and hydrogen refuelling points for buses and cars), and improvements in energy efficiency.

All spending will be aligned with ORLEN’s Green Finance Framework, available on its corporate website at orlen.pl. The framework meets international standards and has been independently reviewed by Moody’s Ratings, which assigned it an SQS2 Sustainability Quality Score (Very Good). Only a few companies with business profiles similar to ORLEN’s have received comparable ratings.

The current offering is ORLEN’s second issue of green Eurobonds. The first one, completed in 2021, comprised 5,000 bonds with a total value of EUR 500 million.

Sustainable development and responsible business practices are central pillars of the ORLEN 2035 strategy. As part of this roadmap, the Group has committed to ending coal-fired power generation by 2030, phasing out coal from heat generation assets by 2035, and replacing coal with gas-fired units, renewables, hydrogen and SMRs. ORLEN’s overarching goal is to achieve net-zero emissions by 2050.