Municipal bonds open up new opportunities for communities — highlights from the meeting between the NSSMC and the KNF

During a working visit to Poland, Oleksii Semeniuk, Chairman of the National Securities and Stock Market Commission, and Arsen Ilin, NSSMC Commissioner, met with representatives of the Polish Financial Supervision Authority (KNF).

During the meeting, the sides discussed approaches to the regulatory framework for the capital market, including strategies for developing the municipal bond segment as a tool for raising funds for local communities.

Particular attention was paid to the practical application of this instrument. In Poland, municipal bonds are used as a flexible alternative to bank lending and can be issued either publicly and listed on a stock exchange or through private placements, which are typically purchased by banks and pension funds.

The sides also discussed the procedure for issuing municipal bonds, its specific features and differences from corporate bonds, as well as the requirements for issuers.

The classification of capital markets according to FTSE standards was discussed separately. Poland was granted developed market status in 2018 and had it confirmed following a review in 2026. The meeting addressed the requirements for such a transition and the steps needed to enhance the market’s investment attractiveness.

The NSSMC is studying Poland’s experience in regulating the municipal bond market with a view to adapting it for Ukraine. In particular, it was agreed to study in detail the experience needed for Ukraine to be granted frontier market status under FTSE standards.