The European Bank for Reconstruction and Development (EBRD) is investing in bonds issued by Cyfrowy Polsat S.A., a leading Polish telecommunications and media company.
The Bank’s investment will encourage the development of the local corporate bond market by supporting a sizable local currency corporate bond issue of a longer maturity, as well as the expansion of the company’s services to remote areas of Poland outside the main cities.
Cyfrowy Polsat offers telecommunications, pay TV and broadcasting services to its customers. The company is listed on the Warsaw Stock Exchange, with the majority of its capital privately controlled. The EBRD holds a 4.9 per cent stake in the company.
Dirk Werner, EBRD Director, Information & Communication Technologies, said: “In order to keep its momentum and achieve further growth the Polish economy needs support through a strong local currency capital market. Our investment today is expected to strengthen this development, especially in the area of non-financial corporate bonds where room for expansion remains. An expanded capital market should provide liquidity for a strong company like Cyfrowy Polsat and further enhance operational delivery.”
Grzegorz Zieliński, EBRD Director for Poland, added: “Through this investment the Bank continues to support Cyfrowy Polsat, one of the EBRD’s key and long-standing clients in Poland, which has become the country’s leading media and telecommunications company, creating a multiple platform of media content with mobile assets that is unique in the region.”
Tomasz Szeląg, CFO and management board member for finance at Cyfrowy Polsat and Polkomtel, said: “This purchase builds on our existing relationship with the EBRD. Having such a strong and reliable investor on board is not only a great pleasure for us but also confirms the stability and attractiveness of our business and the correctness of our group’s development strategy.”
Since the beginning of its operations in Poland in 1991, the EBRD has invested €7.6 billion in more than 350 projects in the country. In addition to its wide product range of bilateral facilities for companies and financial institutions, in recent years the EBRD has developed a growing portfolio of capital market investments (both equity and debt), for which demand is high.
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