ENERGA secures funds for investment projects

The ENERGA Group signed a PLN 1 billion agreement with the European Investment Bank for long-term financing of an investment programme in the distribution segment in 2012-2015.Thanks to a positive assessment of cooperation with the EIB so far, as well as good financial results and a growth strategy focused on network distribution and renewable energy sources, ENERGA was able to obtain favourable credit terms, including a 15-year financing period and low funding costs.

The first tranche of the loan in the amount of PLN 200 million is planned for release in 2013. The maximum repayment period is 15 years. The funds will be allocated for investments in improving the security and reliability of power supplies, connecting new customers and investments in smart grids.

This is the second agreement signed between ENERGA and the European Investment Bank. The previous one was made in 2009, and its timely performance encouraged the EIB to present a new offer to the ENERGA Group.

"ENERGA was the first Polish energy group to receive financing from the European Investment Bank.We are happy that such a demanding institution maintains its positive assessment of our growth strategy and the activity profile of the ENERGA Group, which is focused on distribution and renewable energy.The results are favourable financing terms under the new agreement.This is another significant success for our company abroad, following the issue of Eurobonds," said Roman Szyszko, CFO and Vice-President of ENERGA SA. "Let me remind you that ENERGA intends to spend almost PLN 12.4 billion to develop and modernise the power grid by 2020.The implementation of such a strategy, especially at a time when the requirements on the capital market are high, requires the ability to use various sources of funding offered on attractive terms."

Previously, in order to diversify investment funding sources, ENERGA used financing provided by international financial institutions (EIB, EBRD and NIB) and Polish commercial banks. The company has also issued bonds worth PLN 1 billion and Eurobonds worth EUR 500 million with a maturity of 7 years. Investors’ interest in Eurobonds was seven times higher than the supply and, as a result, they were sold at a record low interest rate of 3.25 per cent, which is the lowest rate among companies operating in the CEE region.