Signing of the syndicated loan

The Management Board of PGE Polska Grupa Energetyczna S.A. (“PGE”) discloses that it has obtained information about signing of the revolving loan agreement (the “Agreement”) by all the parties. The Agreement was concluded with a syndicate consisting of the following banks: Powszechna Kasa Oszczędności Bank Polski S.A., Bank Polska Kasa Opieki S.A., Bank of China (Europe) S.A. with its seat in Luxemburg, acting in Poland through its branch Bank of China (Europe) S.A. (Spółka Akcyjna) Oddział w Polsce, Industrial and Commercial Bank of China (Europe) S.A. with its seat in Luxemburg, acting in Poland through its branch Industrial and Commercial Bank of China (Europe) S.A. (Spółka Akcyjna) Oddział w Polsce, Alior Bank S.A. and Santander Bank Polska S.A. („Banki”) (jointly the “Banks”).

The subject matter of the Agreement includes granting by the Banks of the revolving loan of up to PLN 2 330 million (the “Loan”). The Loan may be utilised for:

- finance the day-to-day operations of PGE S.A. and the Group in particular in line with the long term Group strategy aiming at reduction of emissions and increase of production of electricity from renewable sources;

- finance investment and capital expenditure in connection with the operations of PGE S.A. and the PGE group, other than investments in new carbon assets;

- refinancing of the financial liabilities of PGE and 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 not longer than 6 months. The final repayment date falls on February 26, 2027. Interest rate of the Loan will be calculated on the floating rate based on the relevant WIBOR rate (reference rate) plus margin. The margin may be periodically adjusted depending on the ESG rating assigned to PGE by a specialised agency.

According to the provisions of the Agreement, PGE undertakes to keep the consolidated net debt to consolidated EBITDA (the „Coverage Ratio”) 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 or Fitch and Baa3 or higher assigned by Moody’s) 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 Group.