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Establishment of Eurobonds program and issue of a guarantee by PGE Polska Grupa Energetyczna S.A. for PGE Sweden AB (publ)

  • No. of the report: 24/2014
  • Report date: 22.05.2014
  • Report legal ground: Art. 56 section 1 p. 2 of Act on Public Offering – current and periodic information

Contents of the report

The Management Board of PGE Polska Grupa Energetyczna S.A. (“PGE”) discloses that on May 22, 2014 PGE along with PGE Sweden AB (publ) with its registered office in Stockholm („PGE Sweden”), 100% subsidiary of PGE, signed a documentation establishing Euro Medium Term Note Programme („Programme”). Documentation of the Programme was signed with banks: BNP Paribas, Citigroup Global Markets Limited, ING Bank N.V. London Branch, Nordea Bank Danmark A/S, Powszechna Kasa Oszczędności Bank Polski S.A. and Société Générale (as Initial Dealers) and Citibank N.A., London Branch as Agent and Paying Agent.

Under the Programme PGE Sweden may issue Eurobonds up to EUR 2,000,000,000 with a minimum maturity of 1 year. Proceeds from the issue obtained by PGE Sweden will be intended for granting of loans to PGE.

In connection with the Programme, on May 22, 2014 another agreement was concluded for issue of guarantee by PGE for the liabilities of PGE Sweden, 100% subsidiary of PGE. Guarantee amounts to EUR 2,500,000,000 and refers to liabilities of PGE Sweden arising from the issue of the Eurobonds under the Programme up to EUR 2,000,000,000. Guarantee will be valid until December 31, 2041.

Financial terms of the guarantee will depend on the terms of Eurobonds issued by PGE Sweden and the remuneration for the guarantee will be reflected in the interest rates applied to loans granted to PGE.

Legal ground: §5 section 1 point 7 and § 13 of the Regulation of the Minister of Finance dated February 19, 2009 on current and periodic information published by issuers of securities and on conditions under which such information may be recognized as being equivalent to information required by the regulations of law of a state which is not a member state. (Dziennik Ustaw of 2009, No. 33, item 259, as amended).