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 29 Group companies.

The most important available external financing sources for PGE Group (as at 2022 EOY) are as follows:

  • Domestic bond programme of up to PLN 5.0 billion (not committed).
  • Euro Medium Term Note (EMTN) bond programme of up to EUR 2.0 billion (not committed).
  • 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as part of the "Inwestycje polskie" (“Polish investments”) programme, amounting to PLN 1.5 billion in total – amount withdrawn: PLN 1.0 billion.
  • Syndicated loan - term facility of PLN 3.6 billion – amount withdrawn: PLN 1.5 billion.
  • 3 credit facilities from the EIB with a total value of PLN 4.0 billion - PLN 3.5 billion will be 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.
  • Green facility loan of PLN 0.3 billion from EIB  for financing of “green projects”.
  • 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EBRD to support implementation of a long-term programme for distribution network development and modernisation – amount withdrawn: PLN 0.4 billion
  • Multi-purpose financing line of PLN 2.0 billion from BGK intended for financing the interventional purchase of coal. 
  • Multi-purpose financing line of PLN 1.6 billion from BGK intended for financing the interventional purchase of coal. 
  • Multi-purpose financing line of PLN 2.0 billion from Powszechna Kasa Oszczędności Bank Polski S.A. (PKO BP) intended for financing the interventional purchase of coal. 
  • Multi-purpose financing line of PLN 0.5 billion (not more than equivalent of USD 0.1 billion) from Bank Polska Kasa Opieki S.A. (Pekao S.A.) intended for financing the interventional purchase of coal.
  • 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 aspires to implement 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.