Taking high-speed broadband to Poland’s remote regions
An investment in local currency bonds issued by Cyfrowy Polsat, a leading Polish telecommunications and media company, will support the delivery of high-speed mobile broadband to areas outside Poland’s main cities and encourage the development of a local corporate bond market.
The EBRD holds a 4.9 per cent stake in the company, which is listed on the Warsaw Stock Exchange, with the majority of its capital privately controlled.
Proceeds from the bond issue will support the expansion of the company’s telecommunications networks and technologies and increase mobile broadband coverage in remote areas in Poland. Broadband networks are an important part of the infrastructure needed to foster an innovative, high-tech economy.
The investment also supports the Bank’s Local Currency and Capital Markets (LC2) Development Initiative as it fosters the growth of the corporate bond market in Poland. The sizeable bond issue by Cyfrowy Polsat is expected to act as a catalyst for similar placements by other private companies.
As part of the transaction, Cyfrowy Polsat committed itself to using the proceeds of the EBRD investment to strengthen the company’s social and environmental performance and its corporate governance.
The EBRD owns a
stake in Cyfrowy Polsat