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Signing of a term loan agreement with Bank Gospodarstwa Krajowego

38/2023

28.11.2023 09:43

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 November 28, 2023 PGE has signed the loan agreement (the “Agreement”) with Bank Gospodarstwa Krajowego (“BGK”).

The subject matter of the Agreement includes granting by BGK of a term loan of up to PLN 2 500 million (the “Loan”). The Loan may be utilised for financing of the ongoing economic needs of PGE and investment needs of the PGE Group.

The Loan will be available for use as from the date of fulfilment of the conditions precedent specified in the Agreement. The Agreement provides for interest periods generally not longer than 6 months. Financing period is 5 years from the Agreement’s signing date subject to possible extension for a period not exceeding 3 years. The interest rate of the Loan will be calculated on the floating interest rate based on the relevant WIBOR rate (reference rate) plus margin. Margin of the Loan may be adjusted depending on the ESG (Environmental, Social and Governance) rating assigned to PGE by a specialised, independent agency.

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

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 capital group.

After signing the above mentioned Agreement, total nominal value of the term loan agreements from BGK amounts to PLN 4 billion while the total nominal value of all financing agreements concluded with BGK amounts to PLN 8.35 billion.

Signatures of persons representing the company

Date Name Position and function
2023-11-28 Przemysław Kołodziejak Vice-President of the Management Board
2023-11-28 Rafał Włodarski Vice-President of the Management Board