On 16 December 2010 TAURON Polska Energia and six banks signed agreements for Bond issue program for PLN 1.3 billion. The main goal of the program is to refinance the debt of the Tauron Group.
The following financial institutions are parties to the agreements: Bank Handlowy, ING Bank Śląski, Pekao, BRE Bank, PKO BP and Nordea Bank. As part of the bond issue program, Tauron will issue dematerialized, uncollateralized, coupon bearer bonds. The nominal value of a single bond is PLN 100,000 and the maximum term is 5 years. Floating interest rate will be applied. It is guaranteed that the bonds will be bought by the banks who are the parties to the agreements.
“Signing agreements with banks is a conclusion of several-month long works connected with development and implementation of centralized financing model whose goal is to reduce the cost of financing in the Group. Implementation of centralized financing model will also enable to take advantage of the synergy effect and the financial position of the Group by offering a flexible approach to execution of the investment program, independent from the financial standing of individual companies from the Tauron Group”, said Dariusz Lubera, President of the management Board at TAURON Polska Energia SA.
“The Company will benefit from a reduced number of loan covenants included in the financing agreements which will improve the management of the Group and reduce the administration costs of many loan agreements. In addition, apart from the main goal which is refinancing of the existing debt, the bond issue program will constitute a flexible source of financing for general corporate purposes (the so-called revolving tranche)”, Krzysztof Zawadzki, Vice-President of the Management Board, CFO at TAURON Polska Energia S.A.
