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Signing of the loan agreement

  • No. of the report: 23/2018
  • Report date: 17.09.2018 12:18
  • Report legal ground: Art. 17 sect. 1 of MAR – inside information.

Contents of the report

The Management Board of PGE Polska Grupa Energetyczna S.A. (“PGE”) discloses that on September 17, 2018 PGE has signed the revolving loan agreement (the “Agreement”) with a syndicate of banks: Powszechna Kasa Oszczędności Bank Polski S.A. with its seat in Warsaw, Intesa Sanpaolo S.p.A. with its seat in Turin, acting through its branch Intesa Sanpaolo S.p.A. Spółka Akcyjna Branch in Poland with its seat in Warsaw, MUFG Bank (Europe) N.V. with its seat in Amsterdam and Santander Bank Polska S.A. with its seat in Warsaw (the “Banks”).

The subject matter of the Agreement includes granting by the Banks of the revolving loan of up to PLN 4,100 million (the “Loan”). The Loan may be utilised for:

- financing of the ongoing operations of PGE and PGE Group,

- financing of the investment and capital expenses related to activities of PGE and PGE Group, and

- refinancing of the financial liabilities of PGE and PGE Group.

The Loan will be available for use as from 90th day following the Agreement signing date. The Agreement provides for interest periods not longer than 6 months. The final repayment date falls on December 16, 2022. Interest rate of the Loan will be based on the floating rate based on the relevant WIBOR rate (reference rate) plus margin.

According to the provisions of the Agreement, PGE undertakes to keep the consolidated net debt to consolidated EBITDA (the „Coverage Ratio”) at a level not higher than 4:1 in case PGE holds credit rating on investment grade (i.e. at BBB- or higher assigned by S&P or Fitch and Baa3 or higher assigned by Moody’s) or at a level not higher than 3.5:1 in case PGE does not held credit rating on investment grade.

In addition, the Management Board of PGE informs that the Loan is not secured on any of the assets of PGE or of the PGE Group.