On 28 October TAURON Polska Energia and seven banks signed agreement to increase by PLN 3 bn the PLN 1.3 bn bond issue program concluded in December last year. Now the bond issue program totals PLN 4.3 bn.
The funds that will be raised from the increased bond issue program will be used to finance the purchase of shares of Górnośląski Zakład Elektroenergetyczny from Vattenfall AB or to finance other investments carried out by the TAURON Group.
On 23 August TAURON signed agreement with Vattenfall AB for sales of GZE and then on 20 September submitted to the President of Polish Office for Competition and Consumer Protection (UOKiK) an application saying they intend to pursue concentration with GZE. Final conclusion of the August agreement is subject to UOKiK’s approval.
“When we were signing the agreement to take over GZE we said that the transaction would be financed from a new tranche under the existing bond program and by cash. Therefore, increasing the bond issue program by PLN 3 bn is in line with the initial assumptions” said Dariusz Lubera, president of the Management Board at TAURON Polska Energia S.A.
“We negotiated with the banks and managed to get attractive terms and conditions for the additional funds. For us, the bond issue is a flexible and fast way to raise the capital that we need” added Krzysztof Zawadzki, vice-president of the Management Board, CFO at TAURON Polska Energia S.A.
Financial institutions that are parties to the agreements are: Bank Handlowy w Warszawie S.A., ING Bank Śląski S.A., Bank Polska Kasa Opieki S.A., BRE Bank SA, Powszechna Kasa Oszczędności Bank Polski S.A., Nordea Bank Polska S.A. and Nordea Bank AB.