ENERGA Group to receive PLN 800 million for distribution network investments
ENERGA Group has acquired another attractive source of financing for its distribution network investments. A total of PLN 800 million from the European Bank for Reconstruction and Development (EBRD) will help ENERGA-OPERATOR, among other things, to launch an advanced metering system as part of innovative smart grid solutions which are already being implemented within the Group.
The support provided by EBRD to ENERGA-OPERATOR, an ENERGA Group company, represents a major step in the modernisation of the country’s electricity distribution network. Investments financed by a long-term loan are aimed primarily at increasing the efficiency of the distribution grid managed by ENERGA-OPERATOR SA. The company is the national leader in the implementation of smart distribution grids. It is the first company in Poland with a large-scale programme in place to install “smart meters” (AMI) and develop smart grids.
Half of the loan granted to ENERGA Group, i.e. PLN 400 million (€ 97.5 million), will come from EBRD, while the remaining part will be obtained from a syndicate of PKO Bank Polski and ING Bank Śląski.
The total cost of the ENERGA OPERATOR SA 2012-2015 programme of investments in the development and modernisation of the distribution network is approximately PLN 5.2 billion.
“This is a very important transaction for the European Bank for Reconstruction and Development, ENERGA Group is one of our major partners,” said Nandita Parshad, EBRD’s Head of Power and Energy Utilities. “The far-reaching investment programme implemented by ENERGA-OPERATOR, an ENERGA Group company, will positively and substantially contribute to the improved reliability of electricity distribution in Poland”.
“We see the further funding provided to ENERGA Group by the European Bank for Reconstruction and Development as a sign of trust and confidence in our investment strategy, the key assumption of which is a moderate debt level and low exposure,” said Mirosław Bieliński, Chairman of the Board of Directors of ENERGA SA.
ENERGA Group’s investments are focused on the development of its distribution network and Renewable Energy Sources. The investment programme is implemented through diversification of financing sources. The Group is already using financial support from international financial institutions (the European Investment Bank, the EBRD, the Nordic Investment Bank) and Polish commercial banks, and the PLN 1 billion bond issue in September 2012 also confirmed the confidence of Polish financial institutions in ENERGA Group. The first issue of EUR 500m worth of eurobonds with 7 years maturity was equally popular, with very high demand from investors (seven times greater than the supply). The eurobonds were sold at a record low 3.25% interest rate, the lowest rate among companies operating in Central and Eastern Europe.