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Orlen SAUPDATE: Orlen energy to issue USD 1.25 bln total worth bonds
Poland's largest energy concern Orlen will issue series C corporate bonds with a total nominal worth of USD 1.25 billion, the concern wrote in a market filing. The proceeds from the bonds issue will be applied for the general corporate purposes, including financing the investment projects arising from the strategy by 2035.
The subscription for bonds was conducted on January 23, 2025, and it was finished on the same day. The offer was not divided into tranches.
During the subscription period, around 206 investors indicated their interest in the bonds.
The final order book amounted to more than USD 4,000,000,000, implying 3,3 oversubscription for bonds.
Orlen allocated the bonds to 148 investors from 28 countries.
Citigroup Global Markets Europe AG, J.P. Morgan SE, BANCO SANTANDER, S.A., Goldman Sachs Bank Europe SE and SMBC Bank EU AG participated in the preparation of the transaction.
The number of bonds is 6,250 registered series C bonds in.
The nominal value of one bond is USD 200,000.
The maturity date of bonds is January 30, 2035. The bonds will bear fixed rate interest of 6 percent per year. The bonds will not be secured.
The planned settlement date for the bonds issue is January 30, 2025.
"Orlen will issue bonds on the American market for the first time, and at a record value of USD 1.25 bln," Orlen's CEO Ireneusz Fafara told PAP Biznes
"Issues on the American market are part of our strategy. (...) We want and will try to acquire (funding) from various sources, and such that will be most beneficial for us," he added.
Orlen's CEO underlined that Orlen has the burden of carrying out the energy transformation, which means tremendous expenses on investments.
He said that funds from the bond issue will cover, among other things, investments connected to RES, extraction of natural gas, construction of gas-steam units and the development of alternative fuels.
Orlen's management board had previously said that investment expenditures of the group until 2035 will amount to PLN 350-380 billion (EUR 83.3-90.5 billion), of which Orlen wants to allocate around PLN 85 bln (EUR 20.2 bln) for possible mergers and acquisitions.
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