Signing a long-term loan agreement with the European Investment Bank

Belongs to:

  • Current reports
Title: Signing a long-term loan agreement with the European Investment Bank
Date: 2021.16.12
Report no.:  Current Report No. 39/2021

Current Report No. 39/2021

Date: 16 December 2021

Subject: Signing a long-term loan agreement with the European Investment Bank

Legal basis: Article 17(1) MAR - inside information

The Management Board of Energa SA (_quot;Issuer_quot;) informs that on 16 December 2021, the Issuer and its subsidiary Energa-Operator SA (together the _quot;Borrowers_quot;) signed a long-term investment loan agreement with the European Investment Bank (_quot;EIB_quot;) (_quot;Agreement_quot;). The purpose of the Agreement is to grant the Borrowers a loan up to the PLN equivalent of EUR 150 million (_quot;Loan_quot;).

The funds from the Loan will be used to finance the investment program of Energa-Operator SA for the years 2021-2023, including tasks such as connection of new customers, modernization of the grid network, construction and modernization of distribution assets to connect, among others, new renewable energy sources and elements of the smart grid. Implementation of the above mentioned investment program will ensure an increase in the security of electricity supply while reducing grid losses and improving the quality of service.

According to the Agreement, the Borrowers will be able to use the funds raised in tranches within three years from the date of signing the Agreement, and the maximum repayment period is seventeen years. Depending on the Issuer's decision, the interest rate will be fixed or floating (increased by the EIB's margin) for each application for the disbursement of funds for a given tranche. The Loan will be disbursed following completion of conditions precedent that are standard for this type of financing.

The funds obtained from the Loan will constitute another long-term source of financing for the Energa Capital Group and will strengthen its financial stability.

The website uses cookies to provide services and in accordance with Privacy policy. You can define the conditions for storing or accessing cookies in your browser settings.

I understand