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Signing of the agreement regarding the establishing and operation of FIZAN Eko-Inwestycje fund

  • No. of the report: 24/2019
  • Report date: 30.07.2019 11:31
  • 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 July 30, 2019 PGE, PGE Energia Ciepła S.A. (“PGE EC”), PGE Górnictwo i Energetyka Konwencjonalna S.A. (“PGE GiEK”) and PGE Energia Odnawialna S.A. (“PGE EO”) (subsidiaries of PGE, jointly with PGE later referred to as the „Investors”) signed the investment agreement with Towarzystwo Funduszy Inwestycyjnych Energia S.A. (“TFI Energia” – investment fund company), which plans to establish a closed-end investment fund under the name "Closed-end Investment Fund of Non-public Assets Eco-Investments" (the "Fund"). The Fund will be issuing Investment Certificates that will be subscribed by Investors. The fund will focus its activities on the implementation of investment projects of a complementary nature in relation to the core activity of the PGE Capital Group, consistent with its strategy, aimed at the development of new business lines.

The subject matter of the agreement is the cooperation between TFI Energia and the Investors in the scope of conducting the issue of Investment Certificates, defining the rules for managing the Fund and mutual relations between the Fund's participants. The contract also specifies the level of investors' financial commitment. The entity managing the Fund and representing it in relation to third parties will be TFI Energia.

The Fund's investment objective will be to increase the value of the Fund's assets as a result of the increase in the value of deposits and to obtain investment income. The investment policy of the Fund provides for specific categories of Fund's investments, market areas and criteria for managing the Fund's assets in the selection of those investments.

The fund will pursue its investment objective by investing funds in entities operating in market areas related to:

- electromobility,

- increasing flexibility and optimisation of energy systems,

- energy efficiency services,

- reducing the emissions of the power industry, improving its efficiency, reliability and production flexibility, including investments in highly-efficient generation sources,

- using digital technologies to improve the cost efficiency of production and supporting processes in the energy sector.

The assumed investment horizon covers a period of at least 5 years, unless the detailed investment conditions justify a shorter period.

Investors will be obliged to make payments to the Fund in the total amount of not less than PLN 1.5 billion until the end of the Fund adjustment period, i.e. until the end of the 36th month from the date of Fund registration, based on the schedule specified in the agreement, with the majority of payments falling within year 2020. The fund will be established for an indefinite period. The Fund may be dissolved no sooner than after 7 years from entering the Fund in the register of investment funds.