Signing of loan agreements with Bank Gospodarstwa Krajowego within National Recovery and Resilience Plan

The Management Board of PGE Polska Grupa Energetyczna S.A. (“PGE”, the “Company”) discloses that on March 31, 2025 the Company and Bank Gospodarstwa Krajowego (“BGK”) have signed two loan agreements (the “Loan Agreements”) for funds from National Recovery and Resilience Plan (the “NRRP”) for a total amount of app. PLN 12.1 bn, including respectively:

– app. PLN 9 521 million for financing of projects pursued by PGE Dystrybucja S.A. and

– app. PLN 2 566 million for financing of projects pursued by PGE Energetyka Kolejowa S.A.

The loans are granted from NRRP funds under Investment G3.1.4 “Support of the national power system (Energy Support Fund)” in accordance with the “Rules of Application for BGK's electricity grid loans”.

The funds from the Loan Agreements will be used solely for financing of eligible expenditures within the meaning of the Loan Agreements in their availability period incurred by subsidiaries of PGE related to implementation of the following projects:

- PGE Dystrybucja S.A.: Improving the capacity to integrate renewable energy sources and improving the security of electricity supplies through construction and modernisation of the electricity grid (the “Distribution Project”),

- PGE Energetyka Kolejowa S.A.: strengthening of security, improving the energy quality and improving the capacity to connect larger number of RES to the distribution grid feeding the Polish railways and the accompanying ecosystem (the „Railway Energy Services Project”).

According to the Loan Agreements the Company will be able to use the funds provided that standard conditions precedent for bank financing are fulfilled and after signing of required documentation with PGE Dystrybucja S.A. and PGE Energetyka Kolejowa S.A., including intra-group loan agreements.

The funds from the Loan Agreements will be released successively, based on the pay-out applications, as the Distribution Project and the Railway Energy Services Project progress, but not later than on December 20, 2036 (inclusive) and up to the amount of funds remitted to BGK for this purpose by the minister responsible for climate and environment, acting in case of Investment G3.1.4 as the Institution Responsible for Investment implementation in the meaning of the art. 14la p. 1 of the Act of December 6, 2006 on rules for conducting development policy (Journal of Laws 2006 No. 227 item 1658, as amended).

The Loan Agreements will bear fixed interest rate of 0.5% per annum, and the repayment is projected in semi-annual installments in the period 2034-2049 (the final maturity date is December 20, 2049).

According to the Loan Agreements the amount of the financing may be increased, what will require signing of relevant annexes to the Loan Agreements.