TAURON has obtained a PLN 500 million loan from Erste Group. The funds acquired under the loan agreement will be spent entirely on investment projects related strictly to the Green Turn of TAURON, in particular projects aimed at changing the generation mix, i.e. wind farms and industrial photovoltaic installations.
These funds will also enable financing of the projects that improve energy efficiency, such as modernization of street lighting using LED lamps, smart metering implementation and investments in clean transportation - primarily the development of electric vehicle charging infrastructure. The loan repayment deadline is 5 years from the date of signing the agreement.
"Investments in the Group's renewable generation capacity are priority tasks for the coming decade. The funds obtained just now will allow us to strengthen financial stability and rapidly implement our strategic goals,” says Krzysztof Surma, Vice President of TAURON Polska Energia for Finance. "The terms of the agreement represent also a clear signal for investors that the Group is steadfastly implementing its Green Turn, placing emphasis primarily upon the transition of its generation mix towards RES,” adds TAURON’s Vice President.
"This is one of the first publicized corporate financings in our region that is aligned with the EU Taxonomy and it has clear guidelines for the use of proceeds for green purposes. As such, it provides further proof of Erste Group’s commitment to helping Central and Eastern Europe on its path to decarbonization by supporting the region’s utilities and energy sector firms in their transition to sustainable energy sources and greater energy efficiency," said Ingo Bleier, the Erste Group management board member responsible for Corporate Banking and Markets.
The financing agreement that has just been signed is the first bilateral loan agreement that TAURON has concluded with Erste Group. In October 2020, the CEE banking group was also a co-organizer of the TAURON bond issue (an ESG format bond offering).
For almost three years, TAURON, as a key player on the energy market, has been steadfastly implementing the objectives of the Green Turn of TAURON, which envisages significant investments in renewable energy sources (RES). The Group is planning to have 1 600 MW of installed capacity in renewable energy sources by 2025.
Erste Group
Erste Group’s ca. 45,000 employees serve over 16 million customers in more than 2,100 branches in 7 countries (Austria, Czech Republic, Slovakia, Romania, Hungary, Croatia and Serbia). As a leading financial services provider in the eastern part of the EU, Erste Group is committed to assisting the region’s energy transition. It does so also by working together with its CEE energy clients to help them achieve concrete milestones in their energy transition.
