Press release- ENERGA SA has entered into an agreement

ENERGA SA has entered into an agreement with Bank Pekao S.A. and BRE Bank S.A. concerning the establishment of a domestic bond issue program with a maximum value of PLN 4 bn. The first issue of 7-year bonds will be worth a maximum of PLN 1 bn. Funds generated by the planned issue will be earmarked for expansion and modernization of distribution networks. 

In accordance with the ENERGA Group Multiannual Plan of Strategic Investments through 2020, growth in the distribution segment is treated as a priority. The Group has budgeted a total of nearly PLN 12.5 bn on connecting new renewable energy installations and new energy customers, modernization of existing networks and expansion of intelligent energy networks, accounting for half of the investment outlays planned for this period. The Group's strategy to diversify funding sources assumes that costs will be met from both own funds and those received through domestic bond issues.

The planned issues will be private. Registration of the bonds will be possible in the KDPW (Krajowy Depozyt Papierów Wartościowych S.A.) and quoted on the Alternative Trading System (ATS). Pricing of individual issues will be established through a book-building process. The program will involve the issue of electronic bearer bonds with maturities of up to 10 years.

The issuance of bonds on the domestic market is the next phase in the ENERGA Group's execution of its strategy to diversify funding sources. In the first phase ENERGA obtained funding from International Financing Institutions (EIB, EBRD, NIB) – over PLN 2 bn. The next phase saw the addition of financing from commercial lending institutions totaling approx. PLN 1 bn, and the current phase assumes acquiring funds on the capital market. The company's plans also include the issuance of Eurobonds under the EMTN program.