Łódź issues 85 million pln green bonds

The deputy mayor of Łódź, Adam Pustelnik, announced on 17 March that the city plans to issue green bonds. Łódź will therefore be the first large city in Poland to take such a step. The money from the issue is to go to the implementation of environmentally friendly investments, including for the construction of retention reservoirs at the Group Wastewater Treatment Plant.

The city intends to obtain PLN 50 million from green bonds. These funds are to finance two investments which, in the opinion of the city, are eligible for green bond certificates. It is about the construction of storage reservoirs at the Group Wastewater Treatment Plant, which is to contribute to the improvement of the quality of ground and surface waters. PLN 28 million was allocated for this purpose.

The second investment related to the implementation of the low-emission transport network project will be the reconstruction of Przybyszewskiego Street on the section between Reymonta Square and Kilińskiego Street. The cost of this project is estimated at PLN 34.5 million.

Green bonds are a debt financial instrument that differs from ordinary bonds for the purpose of financing. The funds obtained from their emission are to be used for environmental purposes, i.e. minimizing the negative impact on the surroundings and the natural environment. The first Polish city to issue green bonds was Grudziądz. PLN 63 million obtained in this way last year was allocated to water and sewage investments. Apart from Łódź, Gdańsk and Warsaw are planning to issue this type of securities.

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