Current Report No. 16/2017

Date of Preparation: 01.03.2017                                                                                          

Subject: Closing of a subscription for Eurobonds issued by ENERGA Finance AB (publ)  

Legal Basis: Article 17, Section 1 of the Market Abuse Regulation - confidential information        

In reference to Current Report no. 14/2017 of 20 February 2017, the Management Board of ENERGA SA, which will act as guarantor of bonds issuance, hereby reports that the bookbuilding process for the Eurobonds to be issued under the updated EMTN Program has been completed.

The issue will be carried out by ENERGA Finance AB (publ). The following parameters have been set during the bookbuilding process:

1. Issue amount: 300,000,000 (in words: three hundred million),
2. Issue currency: EUR,
3. Maturity: 10 years,
4. Interest periods: annual,
5. Yield: 250 per cent.,
6. Coupon: 2.125 per cent.,
7. Issue price: 892 per cent.

This transaction will be finalized conditional upon, among others, signing of a subscription agreement in the near future. The final settlement of the transaction is planned for 7 March 2017. ENERGA Finance AB (publ) intends to list the bonds on the Luxembourg Stock Exchange.

The proceeds will be designated for general corporate purposes. In this context, they will provide support for the execution of the ENERGA Group's Strategy in 2016-2025, in which more than 60% of the capital expenditures will be channeled toward the development and modernization of the distribution grid. The proceeds will also serve to enhance the Group's financial security.