On 29 December, in order to refinance the existing debt, TAURON Polska Energia issued five-year corporate bonds. The total value of securities allocated for his purpose amounts to about 850 million. The bonds will be taken over by financial institutions, i.e. Bank Handlowy, ING Bank Śląski, Pekao, BRE Bank, PKO BP and Nordea Bank.
The resources acquired by Tauron will be transferred to key subsidiary companies through the issue of intercompany bonds. Owing to such operation, the subsidiaries will pay their existing debt (loans, bonds) towards financial institutions, the conditions of the structural subordination of the debt. The refinancing programme will be completed at the beginning of January.
- Additionally, apart from decrease of financial costs incurred by the Group due to debt service, the Company will benefit from reduced number of loan covenants included in the existing financing agreements which will improve the management flexibility of the Group and reduce the administration costs of many loan agreements. Moreover, apart from the major goal which is refinancing of the existing debt, the bond issue program will constitute a flexible source of financing for general corporate purposes of the company, through the so-called revolving tranche amounting to PLN 450 million. - says Krzysztof Zawadzki, Vice-President of the Management Board, CFO at TAURON Polska Energia S.A.
