Available financing

PGE Group's existing financing model takes into account the use of funds from its core activities, debt financing in the form of commercial bank credit facilities and bond programmes, credit facilities from Bank Gospodarstwa Krajowego (“BGK”), credit facilities from multilateral institutions such as the European Investment Bank (“EIB”) or the European Bank for Reconstruction and Development (“EBRD”) as well as in the form of preferential financing. In order to effectively manage liquidity, within the Group we have introduced a cash-pooling system, with participation of 27 Group companies.

The most important available external financing sources for PGE Group (as at 2023 EOY) are as follows:

  • 2 credit facilities from BGK as part of the "Inwestycje polskie" (“Polish investments”) programme, amounting to PLN 1.5 billion in total – amount withdrawn: PLN 0.8 billion.
  • Term loan from BGK with a contractual value of PLN 2.5 billion – amount withdrawn: PLN 0 billion.
  • 4 credit facilities from the EIB with a total value of PLN 5.4 billion - PLN 4.9 billion were used for projects related to distribution network modernisation and expansion, while PLN 0.5 billion for financing and re-financing of the construction of cogeneration units - amount withdrawn: PLN 5.1 billion.
  • Green facility loan of PLN 0.3 billion from EIB  for financing of “green projects” – amount withdrawn: PLN 0.3 billion.
  • PLN 0.5 billion credit facility from the EBRD to support implementation of a long-term programme for distribution network development and modernisation – amount withdrawn: PLN 0.3 billion.
  • Revolving syndicated loan of the total contractual value of PLN 2.3 billion  – amount withdrawn: PLN 1.5 billion.
  • Domestic bond programme of up to PLN 5.0 billion (not committed) – amount withdrawn: PLN 1.4 billion.
  • Euro Medium Term Note (EMTN) bond programme of up to EUR 2.0 billion (not committed) – amount withdrawn: EUR 138 million.
  • Preferential loans.
  • Current-account overdraft facilities.

PGE Group's financing policy features diverse maturities for specific financial instruments, which along with the diversification of financing sources, helps the Group to optimise its financing costs. The Group implements a responsible financial policy, which entails maintaining its net debt to EBITDA ratios at a level that makes it possible to retain investment-grade ratings.